An increase in the foreign price of the U.S.dollar is called:
A)depreciation of the U.S.dollar.
B)appreciation of the U.S.dollar.
C)appreciation of the foreign currency.
D)readjustment of the U.S.dollar.
E)readjustment of the foreign currency.

Question

Quizplus · Accepted Answer

An increase in the foreign price of the U.S. dollar means that it takes more units of foreign currency to buy one U.S. dollar. This indicates that the U.S. dollar has appreciated in value relative to the foreign currency.

An Increase in the Foreign Price of the U