Assume the foreign exchange rate for the euro was U.S. $1.00 = .91 euro last month. This month, the exchange rate is U.S. $1.00 = .88 euro. All things equal, the dollar value of European stocks

Question

Quizplus · Accepted Answer

The dollar value of European stocks increased because the euro has appreciated relative to the dollar (it now takes fewer euros to equal one dollar), making European stocks more expensive in dollar terms.

Assume the Foreign Exchange Rate for the Euro Was U