An increase in the foreign price of the U.S. dollar is called:
a. depreciation of the U.S. dollar.
b. appreciation of the U.S. dollar.
c. appreciation of the foreign currency.
d. readjustment of the U.S. dollar.
e. readjustment of the foreign currency.
Question 2
A computer sells for 800 in the United States and for 600 British pounds in England. Given an exchange rate of 0.65 British pounds = 1, how do the computer prices of these countries compare?
a. The computer sells for the same price in both countries.
b. The computer costs 923 more in the United States.
c. The computer costs 95 more in England.
d. The computer costs 124 less in the United States.
e. The computer costs 124 less in England.
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