Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Changes in the price of U.S $ from 0.89 euros (E0) to 0.95 euros (E1) represents either a currency appreciation or depreciation. If EO is the old price of U.S. $ and E1 is the new price, U.S. $ has [Please review the exchange rate slides before attempting.]
A) appreciated by 4.59%. B) appreciated by 6.70%. C)appreciated by 7.70%.
D) depreciated by 6.70%
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