Other Things the Same,if the Exchange Rate Changes from 75

question 41

Multiple Choice

Other things the same,if the exchange rate changes from 75 Algerian dinar per dollar to 72 Algerian dinar per dollar,the dollar has

• A)appreciated and so buys more Algerian goods.
• B)appreciated and so buys fewer Algerian goods.
• C)depreciated and so buys more Algerian goods.
• D)depreciated and so buys fewer Algerian goods.

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Definitions:

Deadweight Loss

The reduction of economic efficiency that happens when the free market does not achieve equilibrium for a particular good or service.

Tariff

A tax imposed by a government on goods and services imported from other countries to protect domestic industries from foreign competition.

Domestic Price

The price of goods or services within a country's borders, as opposed to international or export prices.

Tariff

A tax imposed by a government on imported or exported goods, often used to restrict trade, as they increase the price of imported or exported goods, making them less attractive to consumers.