If the equilibrium exchange rate changes so that it takes more dollars to buy a British pound,then:

Question

Quizplus · Accepted Answer

When it takes more dollars to buy a British pound, it means that the value of the dollar has depreciated in comparison to the pound. This makes British goods more expensive for American consumers, and American goods cheaper for British consumers. Therefore, Americans are likely to import fewer British goods, and the British are likely to buy more U.S. goods.

If the Equilibrium Exchange Rate Changes So That It Takes