If the price of a car in the United States is $22,000, and the exchange rate between the dollar and the Japanese yen falls from 125 yen to 105 yen per dollar, then the price of the American car in Japan will
A. remain the same.
B. rise.
C. fall.
D. be irrelevant, because the Japanese government will impose restrictions on imports from the United States.
Answer: C
Economics
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Refer to the scenario above. The optimal strategy for Rachel is to bid a price:
A) above her willingness to pay. B) equal to half the amount she is willing to pay. C) equal to 5/6 times her willingness to pay. D) up to her willingness to pay.
Economics
Other things the same, if the exchange rate changes from 6 Chinese yuan per dollar to 7 Chinese yuan per dollar, then the dollar
a. appreciates and buys more Chinese goods. b. appreciates and buys fewer Chinese goods. c. depreciates and buys more Chinese goods. d. depreciates and buys fewer Chinese goods.
Economics