If the Exchange Rate Rises, Domestic Goods Become Relatively ______

question 96

Short Answer

If the exchange rate rises, domestic goods become relatively ______ expensive. This change in the affordability of domestic goods makes domestic goods _____ attractive to foreigners. So, _______ ______.

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Definitions:

Complements

Goods, such as Pepsi and pizza, that relate in such a way that an increase in the price of one shifts the demand for the other leftward.

Milk

A nutritious liquid produced by mammals, primarily used as a food product for humans.

Coffee

A popular beverage made from roasted coffee beans, known for its stimulating effect due to caffeine content; it also has significant social and economic implications worldwide.

Demand Curve

The demand curve is a graphical representation showing the relationship between the price of a good or service and the quantity of it that consumers are willing and able to purchase at various prices.