If the Exchange Rate Between the U

question 118

Multiple Choice

If the exchange rate between the U.S. dollar and the European euro went from $1.20 US = 1 euro to $1.10 US = 1 euro, then

• A) European goods have become less expensive for Americans.
• B) American goods have become less expensive for Europeans.
• C) American exports to Europe are likely to increase.
• D) American imports from Europe are likely to decrease.

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Definitions:

Clayton Act

A U.S. antitrust law, enacted in 1914, aimed at promoting fair competition by prohibiting certain business practices that could lead to monopoly or restraint of trade.

Price Discrimination

Charging different prices to different consumers for the same product or service, without a basis on different costs.

Mergers

The combination of two or more companies into one, where one corporation is completely absorbed by another corporation.

Sherman Act

A federal statute that prohibits monopolistic business practices and promotes competition.