If real interest rates rise in the United Kingdom relative to the United States, then this event is most likely to cause the British pound to

A) depreciate and the U.S. dollar to depreciate.
B) depreciate and the U.S. dollar to appreciate.
C) appreciate and the U.S. dollar to appreciate.
D) appreciate and the U.S. dollar to depreciate.

Real Interest Rates

The interest rate adjusted for inflation, representing the true cost of borrowing and the real yield to lenders.

British Pound

The United Kingdom's currency, a major global currency involved in international trading.

U.S. Dollar

The official currency of the United States, widely used as a benchmark in international trade and finance.