Increase in the American dollar price of the South Korean
“An increase in the American dollar price of the South Korean won implies that the South Korean won has depreciated in value.” Explain.
Expert
This is a false statement. It implies just the opposite. If the price of the South Korean won has risen, this means it has appreciated in value by definition. It now takes more dollars to buy a won, which means the dollar has lost purchasing power. It is the dollar that has depreciated against the won.
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