If the exchange rate changes from .8 euros per dollar to .9 euros per dollar,
A) the dollar depreciates so U.S.goods become less expensive relative to foreign goods.
B) the dollar depreciates so U.S.goods become more expensive relative to foreign goods.
C) the dollar appreciates so U.S.goods become less expensive relative to foreign goods.
D) the dollar appreciates so U.S.goods become more expensive relative to foreign goods.
Correct Answer:
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