Question
Question: If American auto companies make a breakthrough in automobile technology and are able to produce a car that gets 60 miles to the gallon,
Question:
If American auto companies make a breakthrough in automobile technology and are able to produce a car that gets 60 miles to the gallon, what will happen to the U.S. exchange rate?
Select the correct answer:
a.This has no effect on the exchange rate
b.Exchange rate effects only indirect, through fuel / oil prices
c.The value of the currency will increase
d.The currency will depreciate
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Case Studies in Finance Managing for Corporate Value Creation
Authors: Robert F. Bruner, Kenneth Eades, Michael Schill
7th edition
007786171X, 77861711, 978-0077861711
