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An Increase in the Exchange Rate from $2

Question 20

Multiple Choice

An increase in the exchange rate from $2.00 = 1 € to $2.20 = 1 € is a


A) 10% depreciation of the euro with respect to the dollar.
B) 10% depreciation of the dollar with respect to the euro.
C) 10% appreciation of the dollar with respect to the euro.
D) None of the above.

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