A change in the euro-dollar exchange rate from $1 per euro to $2 per euro would ____ the U.S. price of German goods, ____ the number of German goods that would be demanded in the U.S.

Question

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When the euro-dollar exchange rate changes from $1 per euro to $2 per euro, it means that the euro has become stronger or the dollar has weakened. This makes German goods more expensive in the U.S., leading to an increase in the U.S. price of German goods. As goods become more expensive, demand for these goods typically decreases, hence reducing the number of German goods demanded in the U.S.

A Change in the Euro-Dollar Exchange Rate from $1 Per