Suppose the exchange rate of 9 Euros to the dollar moves to 10 Euros to the...
Suppose the exchange rate of 9 Euros to the dollar moves to 10 Euros to the dollar. The dollar has _____, making American goods _____ expensive for Europeans.
a) appreciated; more
b) depreciated; more
c) appreciated; less
d) depreciated; less
Homework Answers
The exchange rate of 9 Euros to a dollar moves to 10 Euros to a dollar
THis means that the Euros depreciates against the dollar whereas dollar appreciates against the Euros
The appreciation of dollar will make the American goods more expensive for the Europeans who will have to pay more now to pay for it.
appreciated, more
option(A)
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Suppose the exchange rate of 9 Euros to the dollar moves to 10
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