Question 10 Not yet answered Points out of 1.00 P Flag question If the exchange

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Question 10 Not yet answered Points out of 1.00 P Flag question If the exchange rate changes from l earo per U S dollar to 1.2 euros per US delu, th Earo has: Select one: o a. depreciated, since its vahue bas imcreased appreciated, since the price of U.S. dollars has increased appreciated, since its value has increased depreciated, since its value has declined appreciated, making US. goods cheaper in Eropean countries Question 11 Not yet answered Points out of 1.00 P Flag question A country runs a deficit in its currest account if Select one o a. it convames less goods and services compared to what it produces it follows the double-estry bookkeeping requirempent that total debcts must equal total credits foreps currescy receited from exports and tranafers is less than the foeeign echange needed to pary for inports and to make unilateral transfers th" en east ind de dends earnad by its ,esidents obrepassen eoceed the interest and dir denda urned by bmpm who iret·n donate amet. curesy receed rom exports and tranafers axceeds the forsign echange needed to pay foe iimports and to makce unilateral trassfes

Explanation / Answer

10) THe answer is E -) Appreciated , making US goods cheaper in European Countries.

because, The value of Euro against US dollar has rise, due to which 1 Euro is now become 1.2 Euros against dollar. this means the value of dollar depreciated or more US dollar is required to buy Euro now. So, In European market , the US good become cheapier for European people since it can buy 1.2 US dollar from 1 Euros . which makes them cheaper .

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