Suppose the Exchange Rate Is $1 to 0

question 4

Multiple Choice

Suppose the exchange rate is $1 to 0.8 euros today, and tomorrow becomes $1 to 0.9 euros. Which of these describes what happened?

• A) The dollar depreciated relative to the euro
• B) The dollar appreciated relative to the euro
• C) The euro appreciated relative to the dollar
• D) The dollar lost value comparatively to the euro

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Definitions:

Intervals

Ranges between two points or values, often used in statistics to indicate the confidence or probability associated with a specific estimate.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Expected Frequency

The predicted count of occurrences or the number of times an outcome is anticipated to happen in a statistical experiment.

Normal Distribution

A probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence.