During June 2016, the UK voted to leave the European Union. The table sets out how the value of the pound sterling changed before and after the vote: June £1 = $1.48; Sept £1 = $1.32. The UK is a significant trading nation. What short-term effect is most likely to result from changes in the value of the pound sterling on the UK economy?
- Aincreased disinflation
- Bincrease in cost-push inflation
- Cmore purchasing power of money
- Dreduced demand-pull inflation