A change from 1 3 to 1 2 represents a depreciation of th

A change from $1 = 3 € to $1 = 2 € represents

a depreciation of the dollar.

an appreciation of the dollar.

an appreciation of the €.

both (a) and (c).

none of the above.

Solution

Depreciation of dollar because earlier we could get 3 euros for dollar now dollar value has fallen so that we get only 2 euros