The ________ the exchange rate, the ________ are foreign-produced goods and hence the greater the quantity of dollars supplied.
A) higher; cheaper
B) lower; cheaper
C) higher; more expensive
D) lower; more expensive

Question

Quizplus · Accepted Answer

A higher exchange rate makes foreign-produced goods cheaper, increasing the quantity of dollars supplied as people buy more foreign goods.

The ________ the Exchange Rate, the ________ Are Foreign-Produced Goods

The the Exchange Rate, the Are Foreign-Produced Goods