When the dollar appreciates relative to the pound,the pound price of the dollar
A)increases.
B)decreases.
C)does not change.
D)increases or decreases, depending on the amount of the depreciation.
E) changes in the next period.

Question

Quizplus · Accepted Answer

When the dollar appreciates relative to the pound, it means the dollar has become stronger, so it takes more pounds to buy one dollar, thus increasing the pound price of the dollar.

When the Dollar Appreciates Relative to the Pound,the Pound Price