If One US Dollar Equaled One Euro Last Year, and Then the Then

Multiple Choice

If one U.S. dollar equaled one euro last year, and then the exchange rate shifted so that today one dollar equals two euros, which of the following will most likely occur?

A) Americans will export more U.S. products.
B) Americans will have a lower standard of living.
C) Americans will cancel vacations to Europe.
D) Europeans will import fewer U.S. products.