-In Exhibit FF-6, the market-determined exchange rate of dollars per British pound is 1.80. If the exchange rate is fixed at $1.90 per pound, then
A) the United States would face a trade surplus
B) the United States would face a trade deficit
C) Great Britain would face a trade surplus
D) British exports would exceed their imports
E) the dollar price for pounds is too high

Question

-In Exhibit FF-6, the market-determined exchange rate of dollars per British pound is 1.80. If the exchange rate is fixed at $1.90 per pound, then
A) the United States would face a trade surplus 
B) the United States would face a trade deficit 
C) Great Britain would face a trade surplus 
D) British exports would exceed their imports 
E) the dollar price for pounds is too high

Quizplus · Accepted Answer

The Answer of 
-In Exhibit FF-6, the market-determined exchange rate of dollars per British pound is 1.80. If the exchange rate is fixed at $1.90 per pound, then
A) the United States would face a trade surplus 
B) the United States would face a trade deficit 
C) Great Britain would face a trade surplus 
D) British exports would exceed their imports 
E) the dollar price for pounds is too high

-In Exhibit FF-6, the Market-Determined Exchange Rate of Dollars Per