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

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When the exchange rate changes from 1.30 euros per dollar to 1.00 euro per dollar, the dollar has depreciated. This means that it takes more dollars to buy one euro. As a result, U.S. goods have become cheaper to people in Europe, so the quantity of U.S. dollars demanded will increase.

When the Exchange Rate Between the U