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Suppose that the euro was trading for $1.19 U.S. dollar in May 2010, and then the...

Suppose that the euro was trading for $1.19 U.S. dollar in May 2010, and then the price of euro decreased to $1.12 in May 2018. How would this change affect U.S. exports to Europe?

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The US dollar has appreciated and has become strong. The goods imported from Europe will now become relatively cheaper. this will hurt the exports to Europe. That is the exports by the US to Europe will decline.

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