If the Exchange Rate Changes from $1

question 62

Multiple Choice

If the exchange rate changes from $1.52 = £1.00 to $1.65 = £1.00,then relative to each other,

• A) both the dollar and the British pound have appreciated.
• B) both the dollar and the British pound have depreciated.
• C) the dollar has appreciated and the British pound has depreciated.
• D) the dollar has depreciated and the British pound has appreciated.

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Definitions:

Production Costs

Production costs refer to the total expenses incurred in the manufacture of a product, including labor, materials, and overhead costs.

Natural Monopolies

Markets or industries in which the characteristics of the goods or services make it more efficient for a single company to supply all the demand.

Buyer-Seller Relationships

The dynamic interactions and transactions between buyers and sellers in a market, influencing the trading process and outcomes.

Market Shares

Represents the percentage of an industry's sales that a particular company controls.