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.
D
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The German inflation rate after World War I was measured in the thousands of percents. This condition is referred to as
a. fundamental inflation. b. environmental inflation. c. hyperinflation. d. episodic inflation.
Despite the elimination of the federal budget deficit in the late 1990s, the trade deficit increased due to
a. increased household saving. b. decreased household saving. c. a depreciation of the dollar. d. an increase in inflation rates.