Under a floating exchange-rate system, a country needs to pay more attention to the economic policies of the rest of the world.
a. True
b. False
Indicate whether the statement is true or false
Question 2
A change in the euro-dollar exchange rate from 1 per euro to 2 per euro would ____ the U.S. price of German goods, ____ the number of German goods that would be demanded in the U.S.
a. decrease; reducing.
b. decrease; increasing.
c. increase; reducing.
d. increase; increasing.
