If Last Year One Dollar Equaled One Euro, and Then

Multiple Choice

If last year one dollar equaled one euro, and then the exchange rate shifted so that today one dollar equals two euros, which of the following would most likely not occur?

A) European firms pay more for raw materials imported from the United States.
B) European consumers purchase fewer U.S. products and services.
C) Fewer Europeans travel to the U.S. or study at U.S. universities.
D) European firms lower their prices on goods made with U.S. parts.