30.03.2023 - 18:21

If the exchange rate value of the British pound goes from U.S.$1.75 to U.S.$1.55, then the pound has: a. Appreciated and the British will find U.S. goods cheaper. b. Appreciated and the British will f

If the exchange rate value of the British pound goes from U.S.$1.75 to U.S.$1.55, then the pound has:

a. Appreciated and the British will find U.S. goods cheaper.

b. Appreciated and the British will find U.S. goods more expensive.

c. Depreciated and the British will find U.S. goods more expensive.

Answers (1)
  • aides
    March 31, 2023 в 22:16

    The correct answer is option c. Depreciated and the British will find U.S. goods more expensive.

    When the exchange rate value of a currency goes down, it means that the currency has depreciated in value relative to the other currency. In this case, if the exchange rate of the British pound goes from U.S.$1.75 to U.S.$1.55, it means that it now takes fewer U.S. dollars to buy one British pound. Therefore, the British pound has depreciated in value relative to the U.S. dollar.

    As a result, the British will find U.S. goods more expensive. This is because it will now take more British pounds to purchase the same amount of U.S. goods as before. For example, if a product costs $100 in the United States, it would have cost £57.14 when the exchange rate was U.S.$1.75 per £1. However, with the exchange rate at U.S.$1.55 per £1, the same product will now cost £64.52, making it more expensive for the British.

    Therefore, option c. Depreciated and the British will find U.S. goods more expensive, is the correct answer.

Do you know the answer?
Not sure about the answer?
Find the right answer to the question If the exchange rate value of the British pound goes from U.S.$1.75 to U.S.$1.55, then the pound has: a. Appreciated and the British will find U.S. goods cheaper. b. Appreciated and the British will f by subject International business, and if there is no answer or no one has given the right answer, then use the search and try to find the answer among similar questions.
Search for other answers
New questions in the category: International business
Authorization
*
*

Password generation