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When the Value of the Dollar Changes from £0

question 5

Multiple Choice

When the value of the dollar changes from £0.5 to £0.75,then the British pound has ________ and the U.S. dollar has ________.


Definitions:

Market System

A financial system where investment, production, and distribution decisions are dictated by price signals resulting from the interplay of supply and demand forces.

Fundamental Question

Fundamental Question refers to the basic questions any economic system must answer, which include what to produce, how to produce, and for whom to produce.

Guiding Function

The role of prices in directing the allocation of resources and goods in an economy, ensuring resources are used where they are most valued.

Dollar Votes

The concept that consumers show their preferences and influence the market through where they choose to spend their money.

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