Calculation of appreciated and depreciated value of Euro.
About four months ago, one Euro business for about $ 1.18. Recently, the Euro is trading for about $1.29.
a) Explain whether the evidence above suggests whether the dollar is appreciating or depreciating relative to the Euro. Illustrate what is your conclusion? Explain how you come to which conclusion.
b) Given your answer above (i.e. appreciating or depreciating dollar), explain illustrate what are some of the consequences of this change. In illustrate what ways will this change likely affect the US economy? Be as comprehensive as you can.