Answer
C.) At the equilibrium exchange rate, the pound price of $1 is £1/2.
Work Step by Step
The answer is simple 2 dollars equals £1, so that 1 dollar equals £1/2.
Economics: Principles, Problems, and Policies, 19th Edition
by McConnell, Campbell R.; Brue, Stanley L.; Flynn, Sean M.
Published by
McGraw-Hill Education
ISBN 10:
0073511447
ISBN 13:
978-0-07351-144-3
Chapter 38 - The Balance of Payments, Exchange Rates, and Trade Deficits - Quick Quiz for Figure 38.1 - Page 786: 1
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