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Suppose that, in Year 1, the price of the U. K. pound is $1.44 = £1. In year 2, the price is $1.48 = £1. An economist would validly conclude that, from Year 1 to Year 2 and in nominal terms, the U. K. pound relative to the U. S. dollar and, simultaneously, the U. S. dollar relative to the U. K. pound.
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Suppose that, in Year 1, the price of the U. K. pound is $1.44 = £1. In year 2, the price is $1.48 =...
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