When the Dollar Price of a British Pound Is $0

question 111

Multiple Choice

When the dollar price of a British pound is $0.80, it is correct to state that an American traveling in England will receive ________ pounds per dollar.

• A) 1.25
• B) 8
• C) 80
• D) 125

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Definitions:

Income

Money received on a regular basis from work, investments, business, or other sources.

Utility Function

A mathematical representation of how consumers rank different bundles of goods according to the level of satisfaction or utility those bundles provide.

Interest Rate

The cost of borrowing money, typically expressed as a percentage of the amount loaned.

Income

The financial gain (earned or unearned) accruing over a given period of time.