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 trade deficit?(1 point)
Responses
The trade deficit will decrease, since an appreciating pound means fewer goods will be imported from New Zealand.
The trade deficit will decrease, since an appreciating pound means fewer goods will be imported from New Zealand.
The trade deficit will decrease, since an appreciating pound means more goods will be imported from New Zealand.
The trade deficit will decrease, since an appreciating pound means more goods will be imported from New Zealand.
The trade deficit will increase, since an appreciating pound means fewer goods will be imported from New Zealand.
The trade deficit will increase, since an appreciating pound means fewer goods will be imported from New Zealand.
The trade deficit will increase, since an appreciating pound means more goods will be imported from New Zealand.
The trade deficit will increase, since an appreciating pound means more goods will be imported from New Zealand.