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The British pound has _______ and the dollar has _______ when it goes from $1.50 to $1.00 in value.a.depreciated, depreciatedb.appreciated, depreciatedc.appreciated, appreciatedd.depreciated, appreciated

Question

The British pound has _______ and the dollar has _______ when it goes from 1.50to1.50 to 1.00 in value.a.depreciated, depreciatedb.appreciated, depreciatedc.appreciated, appreciatedd.depreciated, appreciated

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Solution

The correct answer is d. depreciated, appreciated.

Here's why:

  1. The British pound has depreciated: When the value of the British pound goes from 1.50to1.50 to 1.00, it means that it now costs less dollars to buy the same amount of British pounds. This is a decrease in the value of the British pound relative to the dollar, which is known as depreciation.

  2. The dollar has appreciated: On the other side of the equation, it now costs fewer dollars to buy the same amount of British pounds. This is an increase in the value of the dollar relative to the British pound, which is known as appreciation.

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