Suppose that in 2015 you could purchase about 6 Egyptian pounds for a dollar. In 2019, you could purchase about 13 Egyptian pounds for a dollar. Which statement best explains the changes that could have taken place between 2015 and 2019?
A) The dollar appreciated, increasing the trade balance.
B) The dollar depreciated, decreasing the trade balance.
C) The dollar appreciated, decreasing the trade balance.
D) The dollar depreciated, increasing the trade balance.

Question

Quizplus · Accepted Answer

The dollar appreciated because you could get more Egyptian pounds for a dollar in 2019 compared to 2015. This could increase the trade balance by making imports cheaper and exports more expensive in terms of foreign currencies.

Suppose That in 2015 You Could Purchase About 6 Egyptian