When the value of the dollar increases relative to the euro, the number of U.S. dollars needed to purchase a bottle of French wine decreases.

Question

Quizplus · Accepted Answer

When the value of the dollar increases relative to the euro, it means that one dollar can purchase more euros. Therefore, it takes fewer dollars to buy the same amount of goods priced in euros, such as a bottle of French wine.

When the Value of the Dollar Increases Relative to the Euro