A if the exchange rate changes from 170 per british pound 1, Ask an Expert

Management Studies

a. If the exchange rate changes from $1.70 per British pound (£1) to $1.72 per £1, has the pound (£) appreciated or depreciated? Has the dollar appreciated or depreciated?

b. What happens to the £-price that British residents pay for a $500 U.S. export good due to the exchange rate change above?

c. What happens to the $-price that U.S. residents pay for a £1200 import good from Britain?

d. How do these changes affect the economic welfare of U.S. exporters and U.S. importers?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91425737

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