Figure 19-10
-Refer to Figure 19-10.Under the Bretton Woods System of exchange rates,if the par exchange rate was $2 per pound in the figure above,and equilibrium persisted at $3,then a revaluation of the currency would have

Question

Figure 19-10 
-Refer to Figure 19-10.Under the Bretton Woods System of exchange rates,if the par exchange rate was $2 per pound in the figure above,and equilibrium persisted at $3,then a revaluation of the currency would have

Quizplus · Accepted Answer

A revaluation of the currency (in this case, the British pound) would have increased its value relative to the dollar. This would make British exports more expensive to buyers in the United States, thus increasing the price of British exports to the U.S.

Figure 19-10 -Refer to Figure 19-10.Under the Bretton Woods System of Exchange