Which of the Following Statements Is True

question 70

Multiple Choice

Which of the following statements is true?

• A)A higher exchange rate means cheaper exports and cheaper imports.
• B)A higher exchange rate means more expensive exports and more expensive imports.
• C)A higher exchange rate means more expensive exports and cheaper imports.
• D)A higher exchange rate means cheaper exports and more expensive imports.
• E)A higher exchange rate has no effect on the price of exports and imports.

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Definitions:

Marginal Benefit

The added value or enjoyment derived from the consumption of an extra unit of a good or service.

Rational Decisionmaker

An individual who makes choices that maximize their benefits while minimizing costs, based on available information and rational assessment.

Fuel-efficient Cars

Vehicles designed to use less fuel for traveling the same distance compared to standard vehicles, reducing operating costs and environmental impact.

Tax

A mandatory financial charge or other type of levy imposed by a government on individuals or businesses to fund public expenditures and services.