Identify the U.S. dollar
Explanation of Solution
The U.S. dollar exchange rate increased from $0.96 to 1.03 against the Canadian dollar means the value of U.S dollar increases, which implies the appreciation of the U.S dollar against the Canadian dollar.
The U.S dollar exchange rate decreased from 81 to 78 against yen means the value of the dollar decreases, which implies the depreciation of U.S dollar against yen.
Appreciation of currency: The appreciation of currency refers to increase the international value of the currency with respect to other currency in the exchange market, which causes to increase the value of a currency against other currency.
Currency depreciation: The currency depreciation is the fall in the value of the domestic currency relative to the foreign currency, which in turn reduce the value of currency against other currency.
Want to see more full solutions like this?
Chapter 26 Solutions
Economics (12th Edition)
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education