If the U.S. Exchange Rate Falls

question 23

Multiple Choice

If the U.S. exchange rate falls,

• A) foreign products are now more expensive toforeigners.
• B) foreign products are now cheaper to U.S. citizens.
• C) U.S. products are now more expensive to U.S. citizens.
• D) U.S. products are now cheaper to foreign countries.

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Definitions:

Independent Events

Two events are independent if the outcome of one does not affect the outcome of another.

P(A|B)

The likelihood of event A happening, provided that event B has already taken place, signifying a conditional probability.

Disjoint Events

Disjoint events are two or more events that cannot occur simultaneously, indicating there is no overlap in their outcomes.

Nonzero Probabilities

This implies that events or outcomes have a likelihood greater than zero of occurring.