Lukes Trucks and Trailers, Inc. manufactures parts for long-haul tractor and trailer firms and is located in the United States. It purchases goods from Canada which are then sold to customers in the United States. The current exchange rate is C$1.35/$ (C$ stands for Canadian dollar and $ stands for U.S. dollar) Everything else being constant, if the exchange rate is C$1.25/$, then Luke would have to Lukes Trucks and Trailers, Inc. manufactures parts for long-haul tractor and trailer firms and is located in the United States. It purchases goods from Canada which are then sold to customers in the United States. The current exchange rate is C$1.35/$ (C$ stands for Canadian dollar and $ stands for U.S. dollar) Everything else being constant, if the exchange rate is C$1.25/$, then Luke would have to Pay more than 9,000 U.S. Dollars to buy the Canadian Goods which cost 10,000 Canadian Dollars Pay less than 9,000 U.S. Dollars to buy the Canadian Goods which cost 10,000 Canadian Dollars Pay 9,000 U.S. Dollars to buy the Canadian Goods which cost 10,000 Canadian Dollars None of the answers provided is correct.