Suppose the exchange rate is €0.70 = $1. Then the exchange rate becomes €0.80 = $1. What can be said about the value of the dollar and the value of the euro?
A) The dollar has appreciated against the euro.
B) The dollar has depreciated against the euro.
C) If Americans travel to France, their dollars will not buy as much as before.
D) If Germans travel to the United States, their euros will buy more than before.
Correct Answer:
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