If the exchange rate measured in euros per dollar increases, then
A) the dollar depreciates relative to the euro.
B) the euro appreciates relative to the dollar.
C) the euro depreciates relative to the dollar.
D) neither currency appreciates or depreciates.
C
You might also like to view...
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
Use the following graphs to answer the next question.
In the diagrams, AD1 and AS1 are the "before" curves. Assuming Q1 is full-employment output, an expansion is depicted by ________.
A. panel (A) only B. panel (B) only C. panel (C) only D. panels (A) and (B)
During financial crisis of 2008-09, the government rescued financial firms and the auto industry. As a result,
A) the government's budget deficit increased, the government's demand for loanable funds increased and private investment was crowded out. B) the government's rescue plan created a surplus of loanable funds. C) the private demand for loanable funds increased. D) the supply of loanable funds decreased in response to the government's budget deficit. E) real interest rates decreased.
Regardless of the size of wealth and substitution effects for workers, the benefit of a wage subsidy will accrue disproportionately to workers if the labor supply curve is relatively more wage-inelastic than the labor demand curve.
Answer the following statement true (T) or false (F)