9. You hear on the news that in the next few months, the dollar is expected to
Question:
9. You hear on the news that in the next few months, the dollar is expected to change from $1¼.976 Swiss francs to $1¼.9593 Swiss francs.
&a. The dollar is expected to
(appreciate, depreciate) against the franc.
&b.Swiss goods will be (more expensive, cheaper) in the United States.
&c. As a result of the change in exchange rates, U.S. exports to Switzerland will
(increase, decrease), all other things being equal.
&d.Your company, located in the U.S. is planning to make a big purchase of Swiss products.
Other relevant conditions are forecasted to remain stable. If you think the currency exchange forecast is accurate, you should (waitafewmonths to make the purchase, buy as soon as possible)
Step by Step Answer:
Fundamentals Of Economics
ISBN: 9781133956105,9781285531847
6th Edition
Authors: William Boyes, Michael Melvin