Question

If the exchange rate between the United States dollar ($) and the British pound (£) changed from $2 per £1 to $3 per £1, and domestic prices in both countries stayed the same, then the United States dollar would...

Answer 1

As a result of the exchange rate between the U.S. Dollar and the British Pound changing, the U.S. dollar would depreciate and make imports more expensive.

What happens when the Dollar falls against the Pound?

If there is a situation where the British Pound gained more against the U.S. dollar as is the case above, the result would be that people in the U.S. would require more dollars to buy British products.

This means that imports into the U.S. from Britain would be more expensive as more dollars would be needed per British pound.

Find out more on exchange rates at brainly.com/question/1366402.