Suppose the French suddenly develop a strong taste for British wine. Answer the following questions in words

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Suppose the French suddenly develop a strong taste for British wine. Answer the following questions in words and using a diagram.

a. What happens to the demand for pounds in the market for foreign currency exchange?

b. What happens to the value of pounds in the market for foreign currency exchange?

c. What happens to the quantity of UK net exports?

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Economics

ISBN: 9781408093795

3rd Edition

Authors: Mark P. Taylor, N. Gregory Mankiw

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