Analyze the Following Statements to Determine What Would Happen If

Multiple Choice

Analyze the following statements to determine what would happen if the value of the euro appreciates relative to the dollar.

A) The spending power of both American and European consumers would increase.
B) It would reduce the spending power of American consumers seeking to buy European products.
C) It would reduce the spending power of European consumers seeking to buy American products.
D) It would increase the spending power of American consumers seeking to buy European products.
E) The price of goods and services for European products would become evenly matched with American products.