If a Euro Costs $1

question 1

Multiple Choice

If a euro costs $1.25 today, and it costs $1.50 tomorrow, what has happened to the dollar-euro exchange rate?

• A) Both the dollar and euro have depreciated.
• B) The dollar has appreciated and the euro has depreciated.
• C) The dollar has depreciated and the euro has appreciated.
• D) Both the dollar and euro have appreciated.

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Definitions:

Categorical Independent Variables

Variables that divide subjects into groups but do not allow for any kind of mathematical operation among groups.

Regression Model

The equation that describes how y is related to x and an error term; in simple linear regression, the regression model is y = b0 + b1x + e.

Adjusted Multiple Coefficient

A statistical measure adjusted for the number of variables in a model, used to assess the goodness-of-fit of a regression model.

Determination

The process of establishing something exactly, typically through calculation or research.