When the exchange rate for the euro changes from $0.90 to $0.85,then holding everything else constant,the euro has depreciated and American wheat sold in Germany becomes more expensive.

Question

Quizplus · Accepted Answer

When the exchange rate for the euro decreases (from $0.90 to $0.85), it means that the euro has weakened or depreciated in value compared to the US dollar. This makes American wheat sold in Germany more expensive for German buyers, as they now need to spend more euros to purchase the same amount of wheat.

When the Exchange Rate for the Euro Changes from $0