Other things the same, if the exchange rate changes from .30 Kuwaiti dinar per dollar to .35 Kuwaiti dinar per dollar, then the dollar has
A)appreciated and so buys more Kuwaiti goods.
B)appreciated and so buys fewer Kuwaiti goods.
C)depreciated and so buys more Kuwaiti goods.
D)depreciated and so buys fewer Kuwaiti goods.

Question

Quizplus · Accepted Answer

The dollar has appreciated because it now takes more Kuwaiti dinars to buy one dollar, meaning the dollar is stronger and can buy more Kuwaiti goods.

Other Things the Same, If the Exchange Rate Changes from .30