In 2005, one unit of Econia's currency cost eight units of Macroland's currency. In 2015, the exchange rate changes so that one unit of Econia's currency costs 16 units of Macroland's currency. Over that time period, Econia's currency _____, and Macroland's currency:

Question

Quizplus · Accepted Answer

Econia's currency appreciated because it became more valuable in terms of Macroland's currency (from 8 to 16 units of Macroland's currency for 1 unit of Econia's). Macroland's currency depreciated because it became less valuable in terms of Econia's currency.

In 2005, One Unit of Econia's Currency Cost Eight Units