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Question

If the exchange rate between the dollar and the Euro changes from 1 dollar = 1.2 Euro to 1 dollar = 0.8 Euro, and

domestic prices in both countries stay the same, has the dollar appreciated or depreciated, and would US imports from Europe become cheaper or more expensive?

Group of answer choices



A.value of the dollar appreciated, and US imports from Europe are cheaper


B. the value of the dollar depreciated, and US imports from Europe become more expensive


C.the value of the dollar appreciated, and US imports from Europe become more expensive


D. the value of the dollar depreciated, and US imports from Europe become cheaper

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