Practice mode Macroeconomic Issues and Analysis

If the US economy is expected to leave recession because military spending has increased, what will tend to happen to the exchange value of the UK pound?

Correct answer A. Appreciate

Explanation

A US recovery raises American incomes, so US consumers and firms buy more British exports. Paying for them requires pounds, increasing demand for sterling and pushing its value up.

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If the US economy is expected to leave recession because military spending has increased, what will tend to happen to the exchange value of the UK pound?

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If the US economy is expected to leave recession because military spending has increased, what will tend to happen to the exchange value of the UK pound?

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