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A currency that buys more foreign goods than it did last year has:
ADepreciated
BBeen pegged
CBeen floated
DAppreciated
Answer & Solution
Correct answer: D. Appreciated
1. Buying power against other currencies is what appreciation means.
2. A strengthening currency is said to appreciate.
3. A weakening currency is said to depreciate.
4. More foreign goods per unit of currency means the currency has strengthened.
5. So the currency has appreciated.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 15 'Exchange Rates and International Capital Flows'_
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