Suppose the exchange rate of the U.S. dollar was 1.00 euro = $0.50 on Thursday, and on Friday the exchange rate was $1.00 = 2.10 euros. Which of the following best explains what has happened between Thursday and Friday?
A) The U.S. dollar appreciated against the euro.
B) The euro appreciated against the U.S. dollar.
C) The U.S. dollar depreciated against the euro.
D) Both answers B and C are correct.
A
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