Consider the exchange rate between british pounds and us, Ask an Expert

Finance

Consider the exchange rate between British pounds and U.S. dollars. Assume British inflation rates rise while U.S. inflation rates remain constant. Then

(1) The demand for British pounds ______, shifting the demand curve of British pounds to the ______.

(2) The supply for British pounds _______, shifting the supply curve of British pounds to the _______.

(3) Consequently, the British pounds ______ against U.S. dollars.

decreases; left; increase, right; depreciate

increases; left; decreases, right; depreciate

increases; right; decreases, left; appreciate

decreases; right; increases, left; appreciate

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92264785

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