Question

A change from $1 = 3 € to $1 = 2 € represents a depreciation of...

A change from $1 = 3 € to $1 = 2 € represents

a depreciation of the dollar.

an appreciation of the dollar.

an appreciation of the €.

both (a) and (c).

none of the above.

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Answer #1

Depreciation of dollar because earlier we could get 3 euros for dollar now dollar value has fallen so that we get only 2 euros

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