If the dollar price of the English pound goes from $1.50 to $1.20, the dollar has
A) appreciated, and Americans will find English goods cheaper.
B) appreciated, and Americans will find English goods more expensive.
C) depreciated, and Americans will find English goods cheaper.
D) depreciated, and Americans will find English goods more expensive.

Question

Quizplus · Accepted Answer

The dollar has appreciated because it now takes fewer dollars to buy one English pound. As a result, Americans will find English goods cheaper.

If the Dollar Price of the English Pound Goes from $1.50