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Suppose That Today 1 British Pound Exchanges for $1

Question 53

Multiple Choice

Suppose that today 1 British pound exchanges for $1.60.If next week 1 pound exchanges for $1.70,it is clear that


A) The pound has depreciated relative to the dollar.
B) The dollar has appreciated relative to the pound.
C) Both currencies have appreciated.
D) The dollar has depreciated relative to the pound.

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