Question

When the U.S. dollar goes up against the British Pound, it could be a result of _____.

Answer 1

B. An increase in the trade deficit.
I think

Answer 2

Answer:

B. an increase in the trade deficit

Explanation:

The trade deficit occurs when one country imports more products from another country than it exports, that is, if the US demands more English products than the United Kingdom demands American products, there will be a deficit in the US economy in relation to trade with the United Kingdom. United.

To buy products from England, the US needs to demand Sterling Pounds. Thus, the more products the US imports from England, the greater the demand for pounds. The devaluation of one currency occurs exactly as demand for the other currency increases, that is, the more the pound is demanded, the more it will appreciate against the dollar. Therefore, the fiscal deficit may cause the devaluation in the dollar.