Which of the following statements is true of Black Wednesday?
A) Following Black Wednesday, the British pound became less valuable relative to the German mark.
B) Currency traders who had borrowed pounds to buy German marks incurred huge losses due to Black Wednesday.
C) The British government earned enormous profits by selling foreign currency reserves following Black Wednesday.
D) Following Black Wednesday, the British pound became more valuable relative to the German mark.
Question 2
Describe the changes in the variables that will cause supply for a product to increase, shifting the supply curve down and to the right.
What will be an ideal response?
