Suppose the Exchange Rate Has Changed from $US1

Multiple Choice

Suppose the exchange rate has changed from $US1.40 per British pound to $US2.00 per British pound. This means that the

A) U.S. dollar depreciates from £0.71 per $US dollar to £0.50 per $U.S.
B) British pound depreciates against the U.S. dollar.
C) U.S. dollar can buy more British goods than before.
D) U.S. dollar appreciates from £0.50 per dollar to £0.71 per dollar.