If there is a recession in the United Kingdom and a reduction in British imports, and an economic boom in the United States and an increase in U.S. imports, then these events are most likely to cause the British pound to:

A. Appreciate and the U.S. dollar to appreciate
B. Depreciate and the U.S. dollar to depreciate
C. Appreciate and the U.S. dollar to depreciate
D. Depreciate and the U.S. dollar to appreciate

C. Appreciate and the U.S. dollar to depreciate

Economics

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What is the diamond-water paradox?

What will be an ideal response?

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The policy which holds that the federal government should not allow large financial firms to fail, for fear of damaging the financial system, is known as the ________ policy

A) too-big-to-fail B) Dodd-Frank C) mandatory bailout D) rational expectations

Economics