When the nominal exchange rate changes from 4 francs per dollar to 6 francs per dollar, the dollar has:
A)appreciated.
B)depreciated.
C)become overvalued.
D)become undervalued.

Name: When the nominal exchange rate changes from 4 francs per dollar to 6 francs per dollar, the dollar has: A)appreciated. B)depreciated. C)become overvalued. D)become undervalued.
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

In this case, the dollar now buys more francs than before. This means the dollar has appreciated.

When the Nominal Exchange Rate Changes from 4 Francs Per