If the Exchange Rate Changes from 20 Cents Per Franc

question 49

Multiple Choice

If the exchange rate changes from 20 cents per franc to 18 cents per franc, the U.S. dollar has _____

• A) appreciated, since its value has increased.
• B) appreciated, since its value has declined.
• C) depreciated, making French goods more expensive in the United States.
• D) depreciated, since its value has declined.
• E) depreciated, since its value has increased.

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