Under flexible exchange rates, if a dollar can buy more foreign currency, the dollar has
A)appreciated.
B)depreciated.
C)gained.
D)inflated.

Question

Quizplus · Accepted Answer

If a dollar can buy more foreign currency, it means that the exchange rate for the dollar has increased. This increase in exchange rate means that the value of the dollar has appreciated. Therefore, option A is the correct answer.

Under Flexible Exchange Rates, If a Dollar Can Buy More