If a euro costs $1.25 today, and it costs $1.50 tomorrow, what has happened to the dollar-euro exchange rate?

a. Both the dollar and euro have depreciated.
b. The dollar has appreciated and the euro has depreciated.
c. The dollar has depreciated and the euro has appreciated.
d. Both the dollar and euro have appreciated

Ans: c. The dollar has depreciated and the euro has appreciated.