Question

If business leaders in Great Britain become more confident in their economy, they will increase investment, causing the British pound to ________ and pushing the British trade balance toward ________.

Answer 1

If business leaders in Great Britain become more confident in their economy, they will increase investment, causing the British pound to appreciate and push the British trade balance toward a deficit.

What do you mean by investment?

Investment It is the process through which a company creates capital or increases the stock of already existing capital stock.

Investment growth leads to a rise in the demand for loanable money, which raises interest rates. A higher interest rate will lead to less net capital outflow and more demand for the British pound, which will raise its value. The trade balance shifts toward a deficit as imports become less expensive and British exports become more expensive to foreign buyers as the pound appreciates.

To know more about Great Britain economy refer to: brainly.com/question/15993397

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