If an American-made drum set costs $2,500 and the dollar depreciated, the foreign price of the drum set would tend to
A)remain the same.
B)increase.
C)decrease.
D)None of the above

Question

Quizplus · Accepted Answer

When the dollar depreciates, it means that it is worth less compared to foreign currencies. As a result, the foreign price of the American-made drum set would decrease, making it cheaper for foreign buyers.

If an American-Made Drum Set Costs $2,500 and the Dollar