If the dollar appreciates relative to the euro, then
A)the euro can also appreciate.
B)the euro has depreciated.
C)the value of the euro is unchanged.
D)the value of the euro may or may not have changed.

Question

Quizplus · Accepted Answer

If the dollar appreciates relative to the euro, it means that each dollar can buy more euros. Therefore, the euro has depreciated in value. Option A is incorrect because the euro can still appreciate, but not relative to the dollar. Option C is incorrect because the value of the euro has changed. Option D is too vague and doesn't provide a definitive answer.

If the Dollar Appreciates Relative to the Euro, Then