Over the past five years the exchange rate between the British pound and the U.S. dollar $/

QUESTION

Over the past five years, the exchange rate between the British pound and the U.S. dollar, $/, has changed from about 1.90 to about 1.45. Would you agree that over this five-year period, British goods have become cheaper for buyers in the United States?
Solution: The value of the British pound in U.S. dollars has gone up from about 1.90 to about 1.45. Therefore, the dollar has appreciated relative to the British pound, and the dollars needed by Americans to

hase British goods have decreased. Thus, the statement is correct that the British goods have become cheaper for buyers in the United States.

ANSWER:

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