Question 15 (1 point) Suppose the exchange rate is 0.70 euro = $1. Then the exch
ID: 1221059 • Letter: Q
Question
Question 15 (1 point)
Suppose the exchange rate is 0.70 euro = $1. Then the exchange rate becomes 0.80 euro = $1. What can be said about the value of the dollar and the value of the euro?
Question 15 options:
The dollar has appreciated against the euro.
The dollar has depreciated against the euro.
If Americans travel to France, their dollars won't buy as much as earlier.
If Germans travel to the United States, their euros will buy more than before.
The dollar has appreciated against the euro.
The dollar has depreciated against the euro.
If Americans travel to France, their dollars won't buy as much as earlier.
If Germans travel to the United States, their euros will buy more than before.
Explanation / Answer
Ans =The dollar has appreciated against the euro
Currency appreciation is an increase in the value of one currency in terms of another. Currencies appreciate against each other for many reasons, including capital inflows and the state of a country's current account