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-In Exhibit FF-6, the Market-Determined Exchange Rate of Dollars Per

Question 23

Multiple Choice

-In Exhibit FF-6, the market-determined exchange rate of dollars per British pound is 1.80. If the exchange rate is fixed at $1.90 per pound, then A) the United States would face a trade surplus B) the United States would face a trade deficit C) Great Britain would face a trade surplus D) British exports would exceed their imports E) the dollar price for pounds is too high
-In Exhibit FF-6, the market-determined exchange rate of dollars per British pound is 1.80. If the exchange rate is fixed at $1.90 per pound, then


A) the United States would face a trade surplus
B) the United States would face a trade deficit
C) Great Britain would face a trade surplus
D) British exports would exceed their imports
E) the dollar price for pounds is too high

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