Question 2
a us dollar buys more great britain pounds than it used to. the us dollar is said to _.
choose the two correct answers.
appreciate in value
depreciate in value
be a stronger dollar
be a weaker dollar

A US Dollar buys more Great Britain Pounds than it used to then the US Dollar is said to appreciate in value and be a stronger dollar.

Explanation:

When a dollar buys more British pounds it means it is strong and it has appreciated while buying fewer means the dollar is weak and depreciating. Stronger dollar affects the purchasing power and other advantages include:

Lower inflation rate - Lower prices of imported goods prompt local markets to also lower their prices which in turn leaves the consumer with more money.Importing goods at a cheaper rate - imports get cheaper when the dollar gains against sterling providing the consumer with the autonomy to afford imported goods. It is also advantageous to the companies importing bulk goods and raw material.

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