Consider the currency market for British pounds and U.S. dollars. An increase in the supply of British pounds ________.
A. is equivalent to an increase in the demand for the U.S. dollar
B. results in a depreciation of the pound and a depreciation of the dollar
C. results in an appreciation of the pound and a depreciation of the dollar
D. is equivalent to a decrease in the demand for the U.S. dollar
Answer: A
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