An increase in the price of the U.S.dollar in terms of euros will cause,ceteris paribus,

Question

Quizplus · Accepted Answer

If the price of the U.S. dollar increases in terms of euros, then it will take fewer euros to buy one U.S. dollar. This means that European goods will be relatively cheaper for residents of the United States, as they will be able to buy more euros for their dollars and therefore purchase more European goods. This will not necessarily have an effect on European inflation rates or interest rates in the United States.

An Increase in the Price of the U