Suppose that on January 1 the exchange rate was US$1.40 per euro. On December 31 of that year, a person needed $1.45 to buy a euro. Over the course of that year, did the dollar appreciate or depreciate against the euro? Did the change in the exchange rate make it easier or more difficult for U.S. college students to spend a semester at a European university? Explain.

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The Answer of Suppose that on January 1 the exchange rate was US$1.40 per euro. On December 31 of that year, a person needed $1.45 to buy a euro. Over the course of that year, did the dollar appreciate or depreciate against the euro? Did the change in the exchange rate make it easier or more difficult for U.S. college students to spend a semester at a European university? Explain.

Suppose That on January 1 the Exchange Rate Was US$1