If the US Dollar Depreciates Relative to the Russian Ruble, the Ruble

question 305

Multiple Choice

If the U.S. dollar depreciates relative to the Russian ruble, the ruble

• A) will be less expensive to Americans.
• B) may either appreciate or depreciate relative to the dollar.
• C) will appreciate relative to the dollar.
• D) will depreciate relative to the dollar.

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Definitions:

Substitution

The action of replacing one good or service with another based on changes in relative prices, incomes, or preferences.

Indifference Curve

A graph showing different combinations of two goods that provide the same level of utility or satisfaction to a consumer.

Utility

In economics, a measure of satisfaction, usefulness or value that an individual gains from consuming goods and services.

Consumption Bundle

A combination of goods and services selected by a consumer for personal use.