ECON 545(DEVRY) help A Clearer path to student success/uophelp.com ECON 545(DEVRY) help A Clearer path to student suc | Page 76

(b.) (10 points) Has the dollar appreciated or depreciated in value
relative to the pound?
(c.) (10 points) Does this change in the value of the dollar make imports
cheaper or more expensive for Americans? Are American exports
cheaper or more expensive for importers of U.S. goods in Great Britain?
Illustrate by showing the price of a U.S. cell phone in Britain before and
after the change in the exchange rate.
(d.) (10 points) If you had a business exporting goods to Britain, and U.S.
interest rates fell as they have in this example, would you plan to expand
production or cut back? Why?