Economics · May / June 2021 · Paper 11 · Question 29

A US car dealer agrees an import price of US$25 000 for a Japanese car at the current rate of exchange. The US dollar then strengthens by 10% against the Japanese yen. What will be the new import price paid for the Japanese car?

1. AUS$20 000
2. BUS$22 500
3. CUS$25 000
4. DUS$27 500

As printed in the paper