Suppose That in 1999 You Could Purchase About 400 Greek

question 209

Multiple Choice

Suppose that in 1999 you could purchase about 400 Greek drachmas (the former Greek currency, replaced by the euro in 2002) for a dollar. In 2000, you could purchase about 350 drachmas for a dollar. Which of the following best explain the changes that could have taken place between 1999 and 2000?

• A)The dollar appreciated, increasing the trade balance.
• B)The dollar depreciated, decreasing the trade balance.
• C)The dollar appreciated, decreasing the trade balance.
• D)The dollar depreciated, increasing the trade balance.

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Definitions:

Macaroni and Cheese

A popular dish made with macaroni pasta and a cheese-based sauce, often baked or otherwise prepared as comfort food.

Negative

Used to describe values less than zero, situations of decrease or loss, or aspects considered undesirable or harmful.

Diminishing Marginal Utility

The principle that as a person consumes more of a good, the satisfaction gained from consuming an additional unit decreases.

Pie

A baked dish typically made with a pastry dough casing that contains a filling of various sweet or savory ingredients.