Suppose That in 1999 You Could Purchase About 400 Greek

question 128

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 statement best explains 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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