If the U.S. dollar appreciates by 10% against the British pound, but during that same time Britain has a 15% inflation rate, then British wool sweaters will appear _____ buyers.

Question

Quizplus · Accepted Answer

Even though the U.S. dollar appreciated, the high inflation rate in Britain means that prices of goods increased more there than in the U.S. Therefore, the British wool sweaters will appear more expensive to American buyers.

If the US Dollar Appreciates by 10% Against the British Pound, but Pound