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Sagot :
If business leaders in Great Britain become more confident in their economy, they will increase investment, causing the British pound to appreciate and push the British trade balance toward a deficit.
What do you mean by investment?
Investment It is the process through which a company creates capital or increases the stock of already existing capital stock.
Investment growth leads to a rise in the demand for loanable money, which raises interest rates. A higher interest rate will lead to less net capital outflow and more demand for the British pound, which will raise its value. The trade balance shifts toward a deficit as imports become less expensive and British exports become more expensive to foreign buyers as the pound appreciates.
To know more about Great Britain economy refer to: https://brainly.com/question/15993397
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