The arrows in Figures A-D represent possible movements of the exchange rate (euros per U.S. dollar) and the quantity of U.S. dollars buyers are willing and able to buy. Use these figures to answer the questions that follow.

-A deprecation of the euro against the U.S.dollar is represented by Figure ________,and a depreciation of the U.S.dollar against the euro is represented by Figure ________.

Question

The arrows in Figures A-D represent possible movements of the exchange rate (euros per U.S. dollar) and the quantity of U.S. dollars buyers are willing and able to buy. Use these figures to answer the questions that follow.
 
-A deprecation of the euro against the U.S.dollar is represented by Figure ________,and a depreciation of the U.S.dollar against the euro is represented by Figure ________.

Quizplus · Accepted Answer

Figure C represents a depreciation of the euro against the U.S. dollar as the exchange rate has increased from 1.2 to 1.4 euros per dollar while the quantity of U.S. dollars demanded has remained constant or increased.
Figure A represents a depreciation of the U.S. dollar against the euro as the exchange rate has decreased from 0.8 to 0.6 euros per dollar while the quantity of dollars demanded has remained constant or increased.

The Arrows in Figures A-D Represent Possible Movements of the Exchange