You are staying in London over the summer and you have a number of dollars with you. If the dollar depreciates relative to the British pound, then other things the same,
A)the dollar would buy more pounds. The depreciation would discourage you from buying as many British goods and services.
B)the dollar would buy more pounds. The depreciation would encourage you to buy more British goods and services.
C)the dollar would buy fewer pounds. The depreciation would discourage you from buying as many British goods and services.
D)the dollar would buy fewer pounds. The depreciation would encourage you to buy more British goods and services.

Question

Quizplus · Accepted Answer

When the dollar depreciates relative to the British pound, it means that each dollar can buy fewer pounds. This depreciation makes British goods and services more expensive in terms of dollars, discouraging you from buying as many of them.

You Are Staying in London Over the Summer and You