Suppose you are in the market for a Volvo and are considering going to Sweden to purchase it, drive it around Europe for a couple of weeks, and then ship it home. The car of your choice costs 320,000 krona. When you first looked into the possibility of buying a car in Sweden, the rate of exchange was 8.1 krona to $1. Now, the exchange rate is 8.2 krona to $1.

Required:

Has the dollar appreciated or depreciated against the krona? Would this news about the ex¬

change rate change please or displease you? Why?