Question

Suppose that the exchange rate between the dollar and the euro was euro0.879 per dollar in December 2018 and euro0.900 per dollar in December 2019. From December 2018 to December 2019​, the euro:

A. appreciated against the dollar because more euros are needed to purchase one dollar.

B. appreciated against the dollar because fewer euros are needed to purchase one dollar.

C. depreciated against the dollar because more euros are needed to purchase one dollar.

D. depreciated against the dollar because fewer euros are needed to purchase one dollar.

Answer 1

C

Step-by-step explanation:

Suppose that the exchange rate between the dollar and the euro was euro0.879 per dollar in December 2018 and euro0.900 per dollar in December 2019. From December 2018 to December 2019​, the euro: depreciated against the dollar because more euros are needed to purchase one dollar.

If you needed 0.879 euro in December 2018 in December 2019 you need 0.900 euro which means you need more euro to buy the dollar