When the exchange value of the euro rises in terms of the U.S. dollar, U.S. residents find that European imports are:
A) cheaper.
B) more expensive.
C) oversupplied to the United States.
D) more heavily taxed by the U.S. government.

Question

Quizplus · Accepted Answer

When the exchange value of the euro rises in terms of the U.S. dollar, it means that more dollars are needed to buy the same amount of euros. This makes European goods, priced in euros, more expensive for U.S. residents when converted back to dollars.

When the Exchange Value of the Euro Rises in Terms