If the British government increases the number of airplanes it buys from American aeronautics companies, the demand for the American currency will increase.
When price of a foreign currency falls, imports from that foreign country become cheaper. So, imports increase and hence, the demand for foreign currency rises. So when the British government increases the number of airplanes it buys from America then the demand for the American currency will increase.
A country with a high demand for its goods tends to export more than it imports, increasing demand for its currency. A country that imports more than it exports will have less demand for its currency.
Hence, the answer is given and explained above.
To learn more about currency here:
https://brainly.com/question/14372075
#SPJ4
