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What would happen if more American citizens chose to vacation in Britain, this would cause (a)a decrease in the demand for British pounds and an

What would happen if more American citizens chose to vacation in Britain, this would cause

(a)a decrease in the demand for British pounds and an appreciation in the value of the pound relative to the dollar.

(b)an increase in the supply of American dollars and a depreciation in the value of the dollar relative to the British pound.

(c)a decrease in the supply of American dollars and a depreciation in the value of the dollar relative to the British pound.

(d)an increase in the demand for British pounds and a depreciation in the value of the pound relative to the dollar.

Top Answer

(b)an increase in the supply of American... View the full answer

1 comment
  • increase in demand for british pounds is the same as increase in supply of american dollars, but both will have the effect of dollar depreciating, so answer is b
    • hinzai620
    • Jul 20, 2016 at 3:41am

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Other Answers

The correct answer is D an increase in the demand... View the full answer

(b)an increase in the supply of American dollars... View the full answer

(d)an increase in the demand for British... View the full answer

(d)an increase in the demand for British... View the full answer

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