Author Question: Suppose the exchange rate of the U.S. dollar was 1.50 British pounds = 1.00 (U.S.) on Wednesday, and ... (Read 67 times)

mspears3 · **on:** Jun 29, 2018

Suppose the exchange rate of the U.S. dollar was 1.50 British pounds = 1.00 (U.S.) on Wednesday, and on the following Monday the exchange rate was 0.75 (U.S.) = 1.00 British pound.

Which of the following best describes what happened between Wednesday and the following Monday? A) The U.S. dollar appreciated against the British pound.
B) The British pound appreciated against the U.S. dollar.
C) The U.S. dollar depreciated against the British pound.
D) Both answers B and C are correct.

Question 2

Goods that are produced this year, stored in inventories, and then sold to consumers next year

A) count in this year's GDP.
B) count in next year's GDP.
C) count in both this year's and next year's GDP.
D) are not counted as a part of GDP.