Suppose an Australian importer buys manufacturing equipment from France worth 50 million Euros at an exchange rate of AUD/EUR of 0.9622. Suppose that the exchange rate depreciates a week later to AUD/EUR = 0.9582. The net change in the import bill after the depreciation is:
A) $0.44 million.
B) $0.22 million.
C) minus $0.20 million.
D) minus $0.37 million.
Correct Answer:
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