(3) If American auto companies make a breakthrough in automobile technology and are able to produce a car that gets 300 miles to the gallon, what will happen to the US exchange rate? A. The US dollar will appreciate B. The US dollar will depreciate C. The US dollar exchange rate will not change D. Whether the US dollar will appreciate or depreciate is uncertain
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Step 1: If American auto companies make a breakthrough in automobile technology and are able to produce a car that gets 300 miles to the gallon, it will increase the demand for US-made cars. Show more…
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If American auto companies make a breakthrough in automobile technology and are able to produce a car that gets 200 miles to the gallon, what will happen to the U.S. exchange rate?
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