Answer:
The price of crude oil in the domestic currency will decrease
Step-by-step explanation:
If the exchange rate increases, the price of crude oil in the domestic currency will decrease. This is because the increase in the exchange rate makes the domestic currency stronger relative to foreign currencies. As a result, it will take fewer domestic currency units to purchase a given amount of foreign currency, including the currency used to price crude oil on the global market. Therefore, the price of crude oil in the domestic currency will decrease, making it cheaper for domestic buyers but potentially less profitable for domestic producers/exporters.