When the exchange rate between the U.S.dollar and the euro changes from 1.30 euros per dollar to 1.00 euro per dollar,the dollar has ________ and U.S.goods have become ________ to people in Europe so that quantity of U.S.dollars demanded ________.

Question

Quizplus · Accepted Answer

The dollar has depreciated because it now buys fewer euros (from 1.30 to 1.00). This makes U.S. goods cheaper for Europeans, increasing the demand for U.S. dollars.

When the Exchange Rate Between the U