As the dollar depreciates against the Euro:
A) U.S. imports of automobiles from Germany become more expensive.
B) U.S. imports of automobiles from Germany become less expansive.
C) U.S. imports are not affected.
D) U.S. imports will rise.
E) U.S./EU trade will not change.

Question

Quizplus · Accepted Answer

When the dollar depreciates against the Euro, it means that more dollars are needed to buy the same amount of euros. Therefore, products priced in euros, such as German automobiles, become more expensive for U.S. consumers, leading to choice A being correct.

As the Dollar Depreciates Against the Euro