If the exchange rate between British pounds and U.S. dollars is 1 to 1.5, which
of the following is true?
A. The U.S. money supply is 1.5 times the size of the British money
supply.
B. It takes $1.50 to buy one British pound.
C. The GDP of the United States is 1.5 times larger than the GDP of
Britain.
D. One U.S. dollar will buy 1.5 British pounds.