Suppose That the Exchange Rate Between the British Pound and Gold

question 157

Multiple Choice

Suppose that the exchange rate between the British pound and gold was £20 per ounce of Jgold and the exchange rate between the U.S. dollar and gold was $80 per ounce of gold. What is the U.S. dollar exchange rate with respect to the British pound?

• A) $1 exchanges for £4.
• B) $1 exchanges for £0.4.
• C) $1 exchanges for £0.25.
• D) $1 exchanges for 0.25 ounces of gold in Britain.

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Definitions:

Habituated Response

An action or reaction that becomes less pronounced over time as a result of repeated exposure to a specific stimulus.

Stimulation

The act of encouraging development or activity in biological, psychological, or physical systems.

Shape Constancy

Recognition that an object remains the same even though its orientation to the viewer changes.

Orientation

A process of determining one's position, or the adaptation to one's environment regarding time, space, and context.