Suppose the Pound Devalues from $1

question 41

Multiple Choice

Suppose the pound devalues from $1.25 at the start of the year to $1.00 at the end of the year.Inflation during the year is 15% in England and 5% in the U.S.What is the real devaluation ? or real revaluation + of the pound during the year?

• A)- 12.38%
• B)-20.71%
• C)+ 2.39%
• D)+ 1.46%

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Definitions:

Caffeine

A stimulant found in various plants, commonly used to increase alertness and reduce sleepiness.

Dairy Products

Foods produced from the milk of mammals, such as cheese, yogurt, and butter.

Spicy Foods

Food items that contain strong spices and herbs which produce a hot or burning sensation in the mouth.

Isoflavones

A class of phytoestrogens, plant-derived compounds with estrogenic activity, commonly found in soy products.