The Arrows in Figures A–D Represent Possible Movements of the Exchange

question 126

Multiple Choice

The arrows in Figures A–D represent possible movements of the exchange rate (euros per U.S. dollar) and the quantity of U.S. dollars buyers are willing and able to buy. Use these figures to answer the following questions.
-An appreciation of the euro against the U.S.dollar is represented by Figure ________,and a depreciation of the U.S.dollar against the euro is represented by Figure ________.

• A) A; C
• B) A; A
• C) B; D
• D) D; B
• E) A; D

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