select the correct answer.\nrecently, people in the united states have started demanding more products from…

select the correct answer.\nrecently, people in the united states have started demanding more products from the united kingdom. what effect will this growing demand for uk products have on the british pound relative to the us dollar?\na. the pound will depreciate.\nb. the dollar will appreciate.\nc. the pound will appreciate.\nd. the dollar will depreciate.

select the correct answer.\nrecently, people in the united states have started demanding more products from the united kingdom. what effect will this growing demand for uk products have on the british pound relative to the us dollar?\na. the pound will depreciate.\nb. the dollar will appreciate.\nc. the pound will appreciate.\nd. the dollar will depreciate.

Answer

Answer:

C. The pound will appreciate.

Brief Explanations:

When US - consumers demand more UK products, they need to exchange dollars for pounds to pay for those goods. This increases the demand for pounds in the foreign - exchange market. According to the law of supply and demand, an increase in the demand for a currency (pound in this case) relative to another currency (dollar) causes the value of the pound to rise, i.e., the pound appreciates.