Suppose the exchange rate between the U.S.dollar and the British pound is initially 2.00 dollars per pound.According to relative purchasing-power parity,if the price of traded goods rises by 10 percent in the United States and remains constant in the U.K,the exchange rate will become:
A) 1.80 dollars per pound
B) 1.98 dollars per pound
C) 2.02 dollars per pound
D) 2.20 dollars per pound

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The Answer of Suppose the exchange rate between the U.S.dollar and the British pound is initially 2.00 dollars per pound.According to relative purchasing-power parity,if the price of traded goods rises by 10 percent in the United States and remains constant in the U.K,the exchange rate will become:
A) 1.80 dollars per pound
B) 1.98 dollars per pound
C) 2.02 dollars per pound
D) 2.20 dollars per pound

Suppose the Exchange Rate Between the U