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 ?

A. The pound appreciates, and UK net exports rise
B. The pound appreciates, and UK net exports fall
C. The pound depreciates, and UK net exports rise
D. The pound depreciates, and UK net exports fall

Correct Answer: The pound appreciates, and UK net exports fall ✔

Last Updated: June 11, 2019