Demand and supply curves for the british pound

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Suppose because of higher interest rates in the U.S. (relative to British interest rates) investors sell British bonds to buy American bonds. State the potential currency effect on the British pound (appreciation/depreciation/no change) and draw a graph to show the appropriate shift of the demand and/or supply curves for the British pound. Be sure to label all the axes, curves and points on the graph correctly.

Reference no: EM131387748

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