Suppose a U.S. dollar initially trades for €1.20. After a few months, the U.S. dollar trades for €1.40. This means:
A) the dollar has depreciated.
B) the dollar has appreciated.
C) it now costs more U.S. dollars to buy euro-denominated goods.
D) one can expect to see less euro goods bought by U.S. citizens.
Correct Answer:
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