The U.K.'s demand for New Zealand goods will decline.
When the pound sterling appreciates relative to the New Zealand dollar, it means that it would cost more in pounds to purchase goods from New Zealand. This increase in price would likely lead to a decrease in demand for goods from New Zealand as they become relatively more expensive for U.K. consumers.
The United Kingdom currently has a trade deficit with New Zealand. If the U.K. pound sterling appreciates relative to the New Zealand dollar, which of the following correctly explains the effect on the U.K.'s demand for goods from New Zealand?(1 point) Responses The U.K.'s demand will remain the same. The U.K.'s demand will remain the same. The U.K.'s demand for New Zealand goods will rise. The U.K.'s demand for New Zealand goods will rise. The U.K.'s demand for New Zealand goods can't be determined. The U.K.'s demand for New Zealand goods can't be determined. The U.K.'s demand for New Zealand goods will decline. The U.K.'s demand for New Zealand goods will decline.
1 answer