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If the Dollar Per Pound Exchange Rate Falls from $1

Question 46

Multiple Choice

If the dollar per pound exchange rate falls from $1.50 per pound to $1.25 per pound,______.


A) U.S.imports of British goods will increase
B) U.S.exports of goods to Great Britain will increase
C) U.S.exports of services to Great Britain will fall because the price of the pound has increased
D) British demand for American goods will remain unchanged,but American demand for British goods will fall
E) U.S.demand for British goods will remain unchanged,but British demand for American goods will increase

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