Assume an exchange rate of $1 = .60 British pounds. A U.S. product sells in Britain for 18 pounds. By what percentage will dollar revenues change if the dollar price of a pound falls to .50 pounds?
A) -20 percent
B) -16 percent
C) +16 percent
D) +20 percent
Correct Answer:
Verified
Q46: In a graph showing the market supply
Q47: If the U.S. dollar appreciates relative to
Q48: In a graph showing the market supply
Q49: Foreign exchange rates refer to the:
A) Price
Q52: All else being equal, increased U.S. exports
Q54: In equilibrium, if $1 = 0.5 pound
Q55: An increase in the dollar price of
Q56: To Americans buyers, there is a decrease
Q188: If a European importer can buy $10,000
Q200: If an American can purchase 40,000 British
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents