A Change in the Exchange Rate for a Country's Currency
A change in the exchange rate for a country's currency alters the prices of
C)Both exports and imports.
D)Only domestic goods and services.
An increase in the price of the U.S.dollar in terms of euros will cause,ceteris paribus,
A)A lower European inflation rate.
B)Higher interest rates in the United States.
C)European goods to be cheaper to residents of the United States.
D)European goods to be more expensive to residents of the United States.
If one euro is equal to 0.60 U.S.dollars,what would be the euro price of a car that costs $10,000?
Suppose a U.S.firm purchases some English china.The china costs 1,000 British pounds.At the exchange rate of $1.45 = 1 pound,the dollar price of the china is