Author Question: Suppose that the exchange rate between British pounds and U.S. dollars is originally 2.50 per pound. ... (Read 174 times)

cagreen833 · **on:** Jun 30, 2018

Suppose that the exchange rate between British pounds and U.S. dollars is originally 2.50 per pound. If it then changes to 3 for 1 pound, imports of British goods into the U.S. tend to:
a. rise.
b. fall.
c. stay the same.
d. change in an indeterminate direction.

Question 2

Many economists believe that skill-biased technical change has increased the incomes of highly skilled workers and decreased the incomes of low-skill workers.
a. True
b. False
Indicate whether the statement is true or false