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

Question

Quizplus · Accepted Answer

The value of a euro going from US$1.25 to US$1.50 means that the euro has become more expensive relative to the US dollar. This will make exports from the United States more expensive for foreign buyers, leading to a decrease in exports. Conversely, imports to the United States will become cheaper, leading to an increase in imports.

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