Scenario: Exchange Rates The value of a euro goes from US$1.25 to US$1.50. In Germany, exports to the United States will _____ and imports from the United States will _____.

Question

Quizplus · Accepted Answer

When the value of euro goes up, it becomes more expensive for people in the United States to buy German goods, causing a decrease in exports. On the other hand, German imports from the United States become cheaper, causing an increase in imports.

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