In 1991, the French mineral water Perrier was temporarily taken off the market in the United States because of suspected impurities. Other things equal, this action brought about:

a. an increase in the demand for Perrier.
b. a decrease in the price of Perrier in terms of French francs.
c. a depreciation of the French franc relative to the U.S. dollar.
d. an appreciation of the French franc relative to the U.S. dollar.
e. an increased supply of dollars in the foreign exchange market.


c

Economics

You might also like to view...

Based on the case study, "Exchange Rates, Auto Prices, and Currency Wars," explain why exchange rates are of critical importance to firms in the automobile industry, and how Japan has benefited from changes in the value of the Yen

What will be an ideal response?

Economics

If each of us relied exclusively on the market to determine what to buy, we would probably end up with few, if any:

A. streetlights. B. strawberries. C. televisions. D. raincoats.

Economics

The Social Security Administration refers to the percentage of people over age 65 as the

A. recipient ratio. B. beneficiary ratio. C. old-age ratio. D. dependency ratio.

Economics

A profit maximizing single-price monopolist sets price equal to marginal cost

Indicate whether the statement is true or false

Economics