The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-If the official gold value of the Australian dollar changes from 470 Australian dollars per ounce to 493 Australian dollars per ounce, we can say that the Australian dollar has appreciated in value.

Question

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2
 
-If the official gold value of the Australian dollar changes from 470 Australian dollars per ounce to 493 Australian dollars per ounce, we can say that the Australian dollar has appreciated in value.

Quizplus · Accepted Answer

The increase in the amount of Australian dollars needed to buy an ounce of gold indicates that the Australian dollar has depreciated in value, as it now takes more dollars to purchase the same amount of gold.

The Figure Given Below Depicts the Foreign Exchange Market for British