If the exchange rate changes from $1.45 = 1 euro to $1.37 = 1 euro,then
A)both the euro and dollar have appreciated.
B)both the euro and dollar have depreciated.
C)the euro has appreciated and the dollar has depreciated.
D)the euro has depreciated and the dollar has appreciated.

Question

Quizplus · Accepted Answer

When the exchange rate changes from $1.45 = 1 euro to $1.37 = 1 euro, it means that the euro has depreciated and the dollar has appreciated. This is because the dollar is able to buy more euros than before, indicating an increase in the value of the dollar relative to the euro. Therefore, the correct answer is choice D.

If the Exchange Rate Changes from $1