If One US Dollar Equaled One Euro Last Year, and Then the Then

question 69

Multiple Choice

If one U.S. dollar equaled one euro last year, and then the exchange rate shifted so that today one dollar equals two euros, which of the following will most likely occur?

• A)Europeans will purchase more U.S. products.
• B)Americans will have a lower standard of living.
• C)Americans will cancel vacations to Europe.
• D)Europeans will purchase fewer U.S. products.

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Definitions:

E-commerce

E-commerce involves buying and selling goods or services over the Internet, and the transfer of money and data to execute these transactions.

Retail Sales

The selling of goods and services directly to consumers for their personal use, typically in small quantities.

Capital-intensive Business

A business that requires a significant amount of capital investment to create and maintain operations, often in industries like manufacturing.

Labor-intensive Business

A type of business that requires a large amount of manual labor to produce goods or services, as opposed to automation or machinery.