Use these data to answer the following questions about the market for British pounds: a. Draw the

Question:

Use these data to answer the following questions about the market for British pounds:

a. Draw the demand and supply curves for pounds and determine the equilibrium exchange rate (dollars per pound).
b. Suppose that the supply of pounds doubles. Draw the new supply curve.
c. What is the new equilibrium exchange rate?
d. Has the dollar appreciated or depreciated?
e. What happens to U.S. imports of British goods?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...