Refer to Scenario 12.3. What price would this new drink sell for if it sold in a competitive market?

Which of the following will lead to a depreciation of the dollar against the British pound?

A) an increase in British demand for U.S. imports B) an increase in U.S. interest rates C) a decrease in British demand for U.S. assets D) a decrease in U.S. demand for British goods

Refer to the above figure. Suppose the economy is at point B and the central bank adopts expansionary monetary policy. In the short run, this will result in

A) the economy moving towards point A. B) the economy staying at point B. C) the economy moving towards point C. D) an outcome that cannot be predicted, as not enough information is given.