Other things the same,if the exchange rate changes from .8 euros per dollar to .9 euros per dollar,the dollar
A)depreciates so U.S.goods become less expensive relative to foreign goods.
B)depreciates so U.S.goods become more expensive relative to foreign goods.
C)appreciates so U.S.goods become less expensive relative to foreign goods.
D)appreciates so U.S.goods become more expensive relative to foreign goods.

Question

Quizplus · Accepted Answer

When the exchange rate changes from 0.8 euros per dollar to 0.9 euros per dollar, the dollar appreciates because it can now buy more euros. As a result, U.S. goods become more expensive relative to foreign goods.

Other Things the Same,if the Exchange Rate Changes from