Yesterday I could buy $1.35 by paying £1. Today I have to pay 97p to buy $1.35. What had happened to the pound and what effect will it have? a) It has depreciated and now British citizens will buy more American products b) It has been devalued and now British citizens will buy more American products c) It has appreciated and now Americans will buy fewer
Yesterday I could buy $1.35 by paying £1. Today I have to pay 97p to buy $1.35. What had happened to the pound and what effect will it have? a) It has depreciated and now British citizens will buy more American products b) It has been devalued and now British citizens will buy more American products c) It has appreciated and now Americans will buy fewer
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Yesterday I could buy $1.35 by paying £1. Today I have to pay 97p to buy $1.35. What had happened to the pound and what effect will it have?
a) It has
b) It has been devalued and now British citizens will buy more American products
c) It has appreciated and now Americans will buy fewer British products
d) It has been revalued and now the UK inflation rate will decreas
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