What will happen to the U.S. dollar price of a euro and the quantity of euros exchanged when the demand for the euro increases, but the supply does not change? Has the U.S. dollar appreciated or depreciated?
Please provide the best answer for the statement.
The increase in the demand for Euros raises the U.S. dollar price of the euro and increases the equilibrium quantity exchanged for the euro. This change means that the U.S. dollar has depreciated in value because it now requires more U.S. currency to purchase a euro.
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