Suppose the exchange rate between British pounds and Canadian dollars is originally $2.50 per pound.If it then changes to $3 for 1 pound,what will happen to the price of Canadian goods for British importers?

Question

Quizplus · Accepted Answer

The price of Canadian goods for British importers will fall because the British pound has become more valuable relative to the Canadian dollar. This means that British importers will be able to buy more Canadian goods with the same amount of British pounds.

Suppose the Exchange Rate Between British Pounds and Canadian Dollars