Assume That the Exchange Rate Moves from $1 = €1

question 86

Multiple Choice

Assume that the exchange rate moves from $1 = €1.2 to $1 = €0.97.This exchange rate change indicates that:

• A)the euro has depreciated in value.
• B)the price of a holiday in Europe has become less expensive for U.S.residents.
• C)the U.S.dollar price of European chocolate has fallen.
• D)the U.S.dollar has appreciated in value.
• E)the euro has appreciated in value.