Scenario: Exchange Rates The value of a euro goes from US$1.25 to US$1.50. French exports to the United States will:

Question

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As the value of euro increases compared to the US dollar, French exports to the United States will become more expensive. This is because the US dollar now has less purchasing power compared to the euro, making it more expensive for US buyers to purchase French goods.

Scenario: Exchange Rates the Value of a Euro Goes from US$1.25