If the Dollar Per Pound Exchange Rate Falls from $1

question 24

Multiple Choice

If the dollar per pound exchange rate falls from $1.50 per pound to $1.25 per pound,______.

• A)U.S.imports of British goods will increase
• B)U.S.exports of goods to Great Britain will increase
• C)U.S.exports of services to Great Britain will fall because the price of the pound has increased
• D)British demand for American goods will remain unchanged,but American demand for British goods will fall
• E)U.S.demand for British goods will remain unchanged,but British demand for American goods will increase

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