Asked by
Jillian Wilder
on Nov 12, 2024Verified
If the dollar per pound exchange rate falls from $1.50 per pound to $1.25 per pound,______.
A) U.S.imports of British goods will increase
B) U.S.exports of goods to Great Britain will increase
C) U.S.exports of services to Great Britain will fall because the price of the pound has increased
D) British demand for American goods will remain unchanged,but American demand for British goods will fall
E) U.S.demand for British goods will remain unchanged,but British demand for American goods will increase
Exchange Rate
The price of one currency in terms of another, determining how much of one currency can be exchanged for another.
British Goods
Products manufactured in or originating from the United Kingdom, known for their quality and heritage.
- Clarify how modifications in exchange rates affect the import-export balance.
Verified Answer
CR
Learning Objectives
- Clarify how modifications in exchange rates affect the import-export balance.