Asked by
yaumel delgado
on Nov 29, 2024
Verified
The exchange rate between the dollar and the Swiss franc is $1 = 4 francs and the price of an imported Swiss box of chocolates is $5.If the exchange rate changes to $1 = 2 francs,the dollar price of the Swiss chocolates
A) rises to $20.
B) falls to $2.50
C) rises to $10.
D) does not change.
E) may rise or fall depending on other currency exchange rates.
Swiss Francs
The currency of Switzerland, known for its strength and stability.
Exchange Rate
The price at which one currency can be exchanged for another, affecting international trade and economics.
Imported Swiss Box Of Chocolates
A product category involving chocolates that have been produced in Switzerland and then imported into another country.
- Understand how exchange rate changes affect the price of imported goods and services.
Verified Answer
AY
Learning Objectives
- Understand how exchange rate changes affect the price of imported goods and services.