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If the Exchange Rate Changes from $1 = 2 Euros

Question 44

Multiple Choice

If the exchange rate changes from $1 = 2 euros to $1 = 3 euros:


A) the dollar has appreciated in value.
B) the dollar has depreciated in value.
C) the dollar has neither appreciated nor depreciated,but the euro has appreciated in value.
D) U.S.exports to Europe will increase.

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