2473EconomicsMedium
Suppose, due to political instability, Russians suddenly choose to purchase UK assets as opposed to Russian assets Which of the following statements is true regarding the value of the pound and UK net exports?
AThe pound appreciates, and UK net exports rise
BThe pound depreciates, and UK net exports rise
CThe pound appreciates, and UK net exports fall
DThe pound depreciates, and UK net exports fall
Correct answer
C. The pound appreciates, and UK net exports fall
Explanation
The correct answer is The pound appreciates, and UK net exports fall.