If the price per barrel of crude oil goes up to US$75 and the U.S. dollar exchange rate drops to 5.865, the amount to be paid per barrel of crude oil is $439.875 in the domestic currency.
When the price of oil increases, there is a depreciation of the U.S. dollar's exchange rate.
Similarly, when the U.S. dollar weakens, crude oil prices increase.
The implication is that a stronger U.S. dollar ensures that fewer U.S. dollars are spent to purchase a barrel of oil. On the other hand, when the U.S. dollar is weak, the price of oil is higher in dollar terms.
Thus, if the price per barrel of crude oil goes up to US$75 and the U.S. dollar exchange rate drops to 5.865, the amount to be paid per barrel of crude oil is $439.875 in the domestic currency.
Learn more about the U.S. dollar and Crude Oil price interactions at https://brainly.com/question/22847612
#SPJ1
