8. The world's currencies used to be the gold standard. In the US, $1 could be exchanged for 1/20 of an ounce of gold. In England 1 could be sold for 1/4 an ounce of gold. What was the ER between dollars and pounds?

11. If China announces that it will appreciate its currency by 20% over the next couple of years, what will happen to the currency today?

1. appreciate
2. hold constant
3. depreciate

12. If China allows its currency to move, than the Chinese will be able to buy _____ foreign goods.

1. more
2. the same amount of
3. less