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NYC NYC
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8 years ago
Suppose that the United States and Spain both produce cognac and handbags. In the United States, cognac sells for $20 a bottle and handbags sell for $80. In Spain, cognac sells for 30 Euro a bottle and handbags sell for 40 Euro. If the current exchange rate is .8 Euro to the dollar, then:
A) the United States will import both handbags and cognac from Spain.
B) the United States will import cognac from Spain and Spain will import handbags from the United States.
C) the United States will import handbags from Spain and Spain will import cognac from the United States.
D) Spain will import both handbags and cognac from the United States.
Textbook 
Principles of Macroeconomics

Principles of Macroeconomics


Edition: 11th
Authors:
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JesslynJesslyn
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8 years ago
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NYC Author
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#2
8 years ago
I was thinking the same, thank you
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#3
4 years ago
thank
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