How does a depreciating dollar affect the exchange of British beer in the United 5 tates?
Suppose a brewery in England is interested in selling its Bass Ale to a grocery store in the United States. If the price of a six pack of Bass Ale is f5.00 and the exchange rate is $1.50 per British pound, the price for the grocery store is _______ per six pack. If the dollar weakens to $2.00 per pound, the price of Bass Ale is now ________.
We can conclude that from the perspective of U.S. purchasers, a weaker dollar means that foreign currency is _______ (more/less) expensive, which means that foreign goods are ______ (more/less) expensive also. This leads to (an increasef a decrease) in U.S. Imports, which is ______ (goed/bad) for the foreign exporter.
