Final answer:
It is true that Alex could exchange the D-Marks for Euros, as the Euro replaced the German Mark along with other European currencies. The effect of a stronger or weaker dollar on the U.S. economy is complex and can have both positive and negative aspects. Increased European investment in U.S. bonds would likely strengthen the U.S. dollar's exchange rate.
Step-by-step explanation:
The question TRUE OR FALSE: Alex was able to exchange the D-Marks for Euros involves understanding the transition of certain European currencies to the Euro. Given the list of currencies such as the German Mark, French Franc, Italian Lira, and others that were indeed replaced by the Euro, it is true that Alex was able to exchange the D-Marks for Euros. The German Mark was replaced by the Euro when Germany joined the Eurozone.
When discussing whether a stronger dollar is good for the U.S. economy, the depreciation of the U.S. dollar against the Euro from 2002 to 2008 led to a growing trade deficit, which some argue can be detrimental. However, the lower value of the dollar would make U.S. exports cheaper and potentially stimulate foreign investment, showing that the impact on the economy can be multifaceted.
Regarding the last scenario, if European investors buy more U.S. government bonds, the demand for U.S. dollars would increase, potentially strengthening the exchange rate of the dollar against the Euro.