please help me to answer this question thanks Attempts: Average: 12 5. Equilibri
ID: 1117326 • Letter: P
Question
please help me to answer this question thanks Attempts: Average: 12 5. Equilibrium rate of exchange Aa Aa Suppose that, initially, the foreign exchange market between the United States and Great Britain is in equilibrium. However, over time, the supply of the pound shifts to the right, causing the U.S. dollar to the pound. Which of the following is a disadvantage of this change in the supply of foreign currency for the United States? against O U.S. consumers face higher prices on British goods. 0 U.S. exporting firms find it more difficult to compete in the British market. O U.S. consumers face lower prices on British goods. O U.S. exporting firms find it easier to sell goods on British markets. QNA 3.16 © 2004-2016 Aplia. All rights reserved.Explanation / Answer
The supply of the pound shifts to the right (increases), causing the US dollar to appreciate against the pound.
Disadvantage:
- US exporting firms find it more difficult to compete in the British market. (US exporting firms become uncompetitive)
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