t4emi4ikaitt t4emi4ikaitt
  • 10-01-2017
  • Mathematics
contestada

How would you describe the us dollar if the forein exchange rate between the us dollar and british pound changed from 1:1 to 1:0.7?

Respuesta :

zinger76
zinger76 zinger76
  • 10-01-2017
the value of the US dollar would be lower as it is worth less than 1 british pound.
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jajumonac jajumonac
  • 02-02-2020

Answer:

The first ratio is

[tex]1USD : 1 \£[/tex]

That is, 1 US Dollar equals 1 British Pound.

Then, the last ratio is

[tex]1USD:0.7\£[/tex]

Which means that for one US Dollar you would get 70 cents of a British Pound.

As you can see, the second represents a devaluation of the US Dollar against the British Pounds. It has a lower value.

Answer Link

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