Suppose U.S. consumers start buying more English watches and fewer U.S. watches. What impact will this trend have on the foreign exchange market?


AThe U.S. demand for British pounds will increase, but the overall demand for foreign exchange will probably decrease.
BThe U.S. overall demand for foreign exchange and British pounds, in particular, will decrease.
CThe U.S. demand for British pounds will decrease, but the overall demand for foreign exchange will probably increase.
DThe U.S. overall demand for foreign exchange and British pounds, in particular, will increase.