If the Exchange Rate Changes from 1500 Lire Per U

question 68

Multiple Choice

If the exchange rate changes from 1500 lire per U.S.dollar to 1000 lire per U.S.dollar, the U.S.dollar has

• A)appreciated, since its value has increased
• B)appreciated, since the price of foreign exchange has increased
• C)appreciated, making Italian goods cheaper in U.S.dollars
• D)depreciated, since its value has declined
• E)depreciated, since its value has increased

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