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Suppose That on a Monday,the US - UK Bilateral Exchange

Question 17

Multiple Choice

Suppose that on a Monday,the US - UK bilateral exchange rate is such that $5 = £2. By Friday,$6 = £3. Then


A) the pound has depreciated by 20% of its initial value
B) the dollar has appreciated by 20% of its initial value
C) the pound has appreciated by 30% of its initial value
D) the pound has depreciated by 25% of its initial value
E) neither currency has appreciated or depreciated

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