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Suppose the Exchange Rate in the Year 2017 Was 5

Question 55

Multiple Choice

Suppose the exchange rate in the year 2017 was 5 yuan per dollar and in 2018 the exchange rate fell to 4 yuan per dollar. If the price of a Chinese jumper was 120 yuan in both years, the new dollar price in 2018 would be ________ and imports of Chinese jumpers would ________.


A) $40; decrease
B) $40; stay the same because the price stayed the same at 120 yuan
C) $30; increase
D) $40; increase
E) $30; decrease

Correct Answer:

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