How expensive an imported good is depends on the foreign price of the good and:

Question

Quizplus · Accepted Answer

The exchange rate plays a critical role in determining the cost of an imported good. A higher exchange rate means that the foreign currency needed to purchase the good is more expensive, making the imported good more expensive as well. Conversely, a weaker exchange rate means that the foreign currency needed to purchase the good is less expensive, making the imported good cheaper. Therefore, option D is the correct answer.

How Expensive an Imported Good Is Depends on the Foreign