What would happen to the us dollar/ european euro exchange rate of europeans started buying fewer goods manufactured in the united states?

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25-08-2022
Social Studies

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What would happen to the us dollar/ european euro exchange rate of europeans started buying fewer goods manufactured in the united states?

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tutorconsortium201 tutorconsortium201 · Answer 1 · 2022-09-05T10:47:26+02:00

The circumstance that would occur to the us dollar/ European euro exchange rate is that One European Euro would Buy More US Dollars. This would occur if Europeans started purchasing fewer items manufactured in the United States.

What does the exchange rate refer to?

The price of one currency relative to another is known as the exchange rate.
When nations employ gold or another accepted standard, and each currency is worth a particular amount of the metal or other standard, the exchange rate is "fixed."

The importance of the exchange rate?

The currency rate matters for a number of reasons: a. It serves as the basic link between the local and the overseas market for diverse goods, services and financial assets.

Learn more about exchange rate

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