Assume That the British Government Eliminates All Controls on Imports

Multiple Choice

Assume that the British government eliminates all controls on imports by British companies. Other things being equal, the U.S. demand for pounds would ____, the supply of pounds for sale would ____, and the equilibrium value of the pound would ____.

A) increase; increase; increase
B) decrease; increase; decrease
C) remain unchanged; increase; decrease
D) remain unchanged; increase; increase