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Scenario:

About 4 months ago, one Euro traded for about $ 1.18.  at present, the Euro is trading for about $1.29.

Required:

1. Describe whether the evidence above recommends whether the dollar is appreciating or depreciating relative to Euro. What is your conclusion?  Describe how you come to that conclusion.

2. Given your answer above (i.e. depreciating or appreciating dollar), describe what are some of the effects of this change. In what manners will this change likely influence the US economy?  Be as comprehensive as you can.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M910565

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