Economics · Oct / Nov 2016 · Paper 13 · Question 30

In 2009 the exchange rate of the Singapore dollar changed from 1.49 = 1 US dollar to 1.43 Singapore dollars = 1 US dollar. How would this affect the import prices and export prices for Singapore?

1. Aprices paid by Singapore for imports: decrease; prices paid to Singapore for exports: decrease
2. Bprices paid by Singapore for imports: decrease; prices paid to Singapore for exports: increase
3. Cprices paid by Singapore for imports: increase; prices paid to Singapore for exports: decrease
4. Dprices paid by Singapore for imports: increase; prices paid to Singapore for exports: increase

As printed in the paper