6.4 — practice question

A fall in the exchange rate of the UK pound (£) against the US dollar ($), changing from £1 : $1.50 to £1 : $1.00, can only mean that

• Adollars will become more expensive in terms of pounds.
• Bthe pound will be undervalued.
• CUK imports from the US will become cheaper.
• DUS imports from the UK will become more expensive.