When the value of a currency experiences exchange-rate appreciation, its value:
A) increases relative to the value of another currency.
B) increases and it can now buy more goods and services.
C) decreases relative to the value of another currency.
D) has experienced inflation relative to other currencies.

Question

Quizplus · Accepted Answer

Exchange-rate appreciation means that the currency's value has increased compared to another currency, allowing it to buy more of the other currency.

When the Value of a Currency Experiences Exchange-Rate Appreciation, Its