Figure 30-10
-Refer to Figure 30-10. Under the Bretton Woods System of exchange rates, if the par exchange rate was $2 per pound in the figure above, and equilibrium persisted at $3, then a revaluation of the currency would have

Question

Figure 30-10 
-Refer to Figure 30-10. Under the Bretton Woods System of exchange rates, if the par exchange rate was $2 per pound in the figure above, and equilibrium persisted at $3, then a revaluation of the currency would have

Quizplus · Accepted Answer

A revaluation of the currency would mean that the value of the pound increases relative to the dollar, making British exports more expensive for the United States.

Figure 30-10 -Refer to Figure 30-10. Under the Bretton Woods System of Woods