Final answer:
The British pound was weaker against the U.S. dollar in 2017 compared to 2008, as it cost fewer dollars to purchase a pound. This indicates that the U.S. dollar appreciated in value relative to the pound. A weaker dollar leads to stronger foreign currencies, potentially making U.S. exports more competitive. So the correct answer is option C.
Step-by-step explanation:
The question relates to currency exchange rates and how they reflect the relative strength of currencies. The cost of a British pound in U.S. dollars was $2.00 in 2008, but it changed to $1.27 in 2017. This represents a change in value that can be used to determine whether the pound became weaker or stronger, and if the dollar appreciated or depreciated.
Since it took fewer dollars to buy a pound in 2017 compared to 2008, this indicates that the British pound became weaker against the dollar in that period. Conversely, this means that the U.S. dollar appreciated against the British pound. Appreciation of a currency means that it gains value relative to another currency.
Using an example to illustrate this concept, if the dollar weakens, which means you need more dollars to buy the same amount of pounds, the pound in turn rises in value. For instance, if a Ford pickup truck costs $25,000 and the exchange rate from dollars to pounds is $2.00 per pound, the price is £12,500. A weaker dollar indeed means that foreign currencies can buy more dollars, making U.S. exports appear less expensive to international buyers.