Suppose a Set of English Bone China Costing 1,000 Pounds

question 205

Multiple Choice

Suppose a set of English bone china costing 1,000 pounds costs $3,000 in the United States.After devaluation, the set of china costs $1,000.This change

• A) shows that to foreign purchasers, the price of the china is the same before and after the devaluation.
• B) makes the china less attractive to foreigner purchasers.
• C) makes the china more attractive to foreign purchasers.
• D) is irrelevant to foreign purchasers.
• E) proves that foreign purchasers would prefer devaluation of the English pound so that it would be worth $2.That way, they could get even more for their dollars.

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