The current exchange rate of the dollar for French francs is 5.5 Francs per dollar. If the exchange rate increases to 6 Francs per dollar t hen, other things being equal
A. The price of U.S. beef exported to France will fall to French consumers paying in francs
B. The price of imported French wine in the United States will fall to U.S. consumers paying in dollars
C. The price of U.S. beef exported to France will increase to French consumers paying in francs
D. The price of imported French wine in the United States will increase to U.S. consumers paying in dollars
E. Both b and c
Answer: E
Microeconomics
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