
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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With an exchange rate of 0.73 euros for 1 dollar, a US company is able to purchase 100 trucks from Germany. If the exchange rate shifted to 1 euro for 1 dollar, what would happen to the price the US company would pay for trucks?
A)The price would go down, because the US dollar has appreciated.
B)The price would go up, because the US dollar has depreciated.
C)The price would go up, because the US dollar has appreciated.
D)The price would go down, because the US dollar has depreciated.
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