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If the Exchange Rate Goes from $2

Question 34

Multiple Choice

If the exchange rate goes from $2.00 = 1 € to $1.80 = 1 €,the result 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 euro with respect to the dollar.
D) None of the above.

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