If the US Dollar Appreciates Relative to the British Pound, Then

question 139

Multiple Choice

If the U.S. dollar appreciates relative to the British pound, then

• A) the pound will appreciate relative to the U.S. dollar.
• B) the pound will depreciate relative to the U.S. dollar.
• C) British goods will be more expensive for Americans.
• D) American goods will be less expensive for the British.

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Definitions:

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.

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Discount Rates

Interest rates used to calculate the present value of future cash flows.

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Financial limitations that restrict the ability to purchase or invest due to the unavailability of liquid assets or cash.