The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-If the euro per dollar exchange rate changes from $1 = 0.8 euros to $1 = 0.7 euros, it implies that the euro has depreciated against the dollar.

Question

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2
 
-If the euro per dollar exchange rate changes from $1 = 0.8 euros to $1 = 0.7 euros, it implies that the euro has depreciated against the dollar.

Quizplus · Accepted Answer

This change means that now you get fewer euros for each dollar, indicating that the euro has appreciated against the dollar, not depreciated.

The Figure Given Below Depicts the Foreign Exchange Market for British