If the price of a truck in the United States is $18,000, and the exchange rate between the dollar and the Argentine peso falls from 10 pesos to 8 pesos per dollar, then the price of the American truck in Argentina will
A. fall.
B. remain the same.
C. rise.
D. be irrelevant, because the Argentine government will impose restrictions on imports from the United States.
Answer: A
Economics
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A) slope of the demand curve. B) marginal cost of each good. C) magnitude of the slope of the indifference curve. D) relative prices of the two goods.
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