Considering the euro/U.S. dollar exchange rate, as a U.S. dollar increases in value versus the euro (holding other factors constant):
A) we would expect the supply curve of dollars to slope downward.
B) foreign goods become relatively less expensive than American goods.
C) foreign assets become relatively more expensive than American assets.
D) American goods become relatively less expensive than foreign goods.

Question

Quizplus · Accepted Answer

As the U.S. dollar increases in value against the euro, foreign goods become cheaper for Americans, making them relatively less expensive than American goods.

Considering the Euro/U