Assume an exchange rate of $1 = 0.60 British pound. A U.S. product sells in Britain for 18 pounds. By what percentage will dollar revenues change if the dollar price of a pound falls to 0.50 pound?
A. +20%
B. +16%
C. -16%
D. -20%
Answer: A
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When the value of one currency falls relative to another currency, the exchange rate for the first currency has
A) depreciated. B) appreciated. C) demanded. D) revalued.
Which of the following varies along a given demand curve?
a. consumer preferences b. prices of substitutes c. prices of complements d. the price of the good itself e. income
Suppose an increase in symphony tickets prices reduces the total revenue. This is evidence that demand is:
a. price elastic. b. price inelastic. c. unitary elastic. d. perfectly elastic.
Answer the following statements true (T) or false (F)
1) Productivity growth was greater between 1973 and 1995 than between 1995 and 2012. 2) The economy of 1995-2012 was characterized by greater productivity growth and greater economic growth than in the immediately preceding two decades. 3) Because of the recent rise in the average rate of productivity growth, the business cycle is dead. 4) Critics of economic growth say studies show that people are not interested in achieving higher standards of living.