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6.Appreciation of the U.S. dollar versus the British pound may occur when: A.disposable income in the...

6.Appreciation of the U.S. dollar versus the British pound may occur when:

A.disposable income in the United States falls and income in the United Kingdom stays the same.

B.inflation occurs in the United States but not in the United Kingdom.

C.interest rates in the United States decrease and interest rates in the United Kingdom stay the same.

D.interest rates in both the United States and the United Kingdom increase.

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Answer #1

A.disposable income in the United States falls and income in the United Kingdom stays the same.

Explanation: This will lower the money supply and increase interest rate in USA. So, the US dollar will appreciate.

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