Asked by
Katryna Piccolino
on Dec 17, 2024
Verified
If the exchange rate is expressed as euros/dollar, the dollar is said to depreciate against the euro if the exchange rate
A) falls.Other things the same, it will cost fewer euros to buy U.S.goods.
B) falls.Other things the same, it will cost more euros to buy U.S.goods.
C) rises.Other things the same, it will cost fewer euros to buy U.S.goods.
D) rises.Other things the same, it will cost more euros to buy U.S.goods.
Depreciate
The process by which an asset's value decreases over time due to use, wear and tear, or obsolescence.
Euros/Dollar
The exchange rate between the euro and the U.S. dollar, indicating how much one euro is worth in U.S. dollars or vice versa.
Exchange Rate
What one currency equals in terms of another currency's value.
- Examine the influence of changing currency values on the dynamics of international trade and investment.
Verified Answer
AD
Learning Objectives
- Examine the influence of changing currency values on the dynamics of international trade and investment.