What does it mean when someone says that the U.S. dollar has depreciated or the U.S. dollar has appreciated? Give an example of each case using the euro and the U.S. dollar

Please provide the best answer for the statement.

Depreciation means that it takes more dollars to buy foreign currencies. If one euro costs $1.25 U.S. dollars one month and then several months later a euro costs $1.30, then the U.S. dollar has depreciated in value. Appreciation of the dollar means that it takes fewer dollars to obtain foreign currencies. If one euro costs $1.50 U.S. dollars one month and then several months later a euro costs $1.40, then the U.S. dollar has appreciated in value.

Economics

You might also like to view...

Using the data in the table above, gross domestic product equals

A) $1,920. B) $1,940. C) $2,150. D) $2,400.

Economics

Common property often results in

A) a negative externality. B) a social benefit. C) a private cost. D) exclusive rights of ownership.

Economics