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Question: 1. What would make a country decide to change from a common currency, like the euro, back to its own currency?
2. A British pound cost $1.56 in U.S. dollars in 1996, but $1.66 in U.S. dollars in 1998.
(a) Was the pound weaker or stronger against the dollar?
(b) Did the dollar appreciate or depreciate versus the pound?
(c). Using the information from the Exercise, calculate the cost of a U.S. dollar in terms of British pounds in 1996 and 1998.
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