Answer to Question #52656 in Macroeconomics for Jay Skitmore

Question

Why would the supply of the pound increase if people at home are swapping their currency for other people's currency?

Answer 1

Supply of the currency is the entire stock of currency in a country's economy as of a particular time. So, if people want to swap their currency for other people's currency they need to have more currency on the hand that therefore increases the supply of the pound.