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If You Are Vacationing in France and the Dollar Depreciates

Question 1

Multiple Choice

If you are vacationing in France and the dollar depreciates relative to the euro,then


A) the dollar buys more euros.It will take fewer dollars to buy a good that costs 50 euros.
B) the dollar buys more euros.It will take more dollars to buy a good that costs 50 euros.
C) the dollar buys fewer euros.It will take fewer dollars to buy a good that costs 50 euros.
D) the dollar buys fewer euros.It will take more dollars to buy a good that costs 50 euros.

Correct Answer:

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