A revaluation of the British pound implies 1.an increase in the price of British goods to U.S.citizens
2)a decrease in the price of British goods to U.S.citizens
3)an increase in the price of American goods to citizens of Britain
4)a decrease in the price of American goods to citizens of Britain

Question

Quizplus · Accepted Answer

A revaluation of the British pound means that it has increased in value compared to other currencies, including the US dollar. This leads to a decrease in the price of American goods for British citizens (choice 4) as it becomes cheaper for them to import goods from the US. However, it also implies an increase in the price of British goods for US citizens (choice 1) as it becomes relatively more expensive for them to purchase British products.

A Revaluation of the British Pound Implies 1