Suppose Last Month 1 British Pound Could Buy US$4

question 41

Multiple Choice

Suppose last month 1 British pound could buy US$4. This month, 2 British pounds is equivalent to US$4. From this, we know that

• A) both the U.S. dollar and the British pound appreciated.
• B) the U.S. dollar depreciated, and the British pound appreciated.
• C) the U.S. dollar appreciated, and the British pound depreciated.
• D) both the U.S. dollar and the British pound depreciated.

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