If the current exchange rate is $1.4658 per euro, the dollar will have appreciated relative to the euro if the exchange rate next week is

Question

Quizplus · Accepted Answer

The dollar appreciates relative to the euro when you need fewer dollars to buy a euro, or when you get more euros for a dollar. Choice A ($1.4241 per euro) means you need fewer dollars to buy a euro, indicating appreciation. Choice C (0.7022 euros per $) means you get more euros for a dollar, also indicating appreciation.

If the Current Exchange Rate Is $1