If the exchange rate changes from $1.45 = 1 euro to $1.37 = 1 euro, then
A) both the euro and dollar have appreciated.
B) the euro has appreciated and the dollar has depreciated.
C) the euro has depreciated and the dollar has appreciated.
D) both the euro and dollar have depreciated.
C
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Use the economic way of thinking to answer the following question: Does a diabetic need insulin?
A) No B) Yes, and therefore diabetics will always buy all what they need. C) Probably, but diabetics often find substitutes for insulin in the real world. D) Probably, but diabetics only care about the expected cost of insulin and ignore the expected benefits.
You won the "$1,000 per year forever" lottery. You decided to convert such prize into a lump sum payment. The interest rate is 2% per year. How much is this lump sum payment?
A) $25,000 B) $1,000 C) $50,000 D) $365,000