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OnJuly 1, 2013, the exchange rate between the British Pound (GBP) and the US dollar (USD) was 1.5169 USD/GBP.Five months later, onDecember 1, 2013 the
OnJuly 1, 2013, the exchange rate between the British Pound (GBP) and the US dollar (USD) was 1.5169 USD/GBP.Five months later, onDecember 1, 2013 the rate was 1.6383 USD/GBP.
- Over this time period, did the dollar appreciate or depreciate against the pound?Explain.
- Consider an American export good priced at $100 on both dates.What was the GBP price of the good on both dates?
- Consider a British export good priced at 100GBP on both dates.What was the US dollar price of that good on both dates?
- How is the change in the GBP/USD exchange rate likely to affect US exports?US imports?US Net Exports?
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Capitalist Political Economy Thinkers And Theories
Authors: Heather Whiteside
1st Edition
0429888031, 9780429888038
