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Let's translate between newspaper jargon about exchange rates and the economic reality of exchange rates. a . Last week, the currency of Frobia was trading
Let's translate between newspaper jargon about exchange rates and the economic reality of exchange rates. a Last week, the currency of Frobia was trading one for one with the currency of Bozzum. This week, one unit of Frobian currency buys two units of Bozzumian currency. Which currency "rose"? Which currency became "stronger"? Which currency "appreciated"? b The currency in the nation of Malvollo becomes "weaker." Now that it's weaker, can US dollars buy more of the Maivolian currency than before or less than before? A college studant travels from the United States to Germany. Just before he leaves, he changes into euros. He spends only half the money while in Germany, so on his retum to the United States, he exchanges his euros back into dollars. However, while ha was admiring Munich's historle Marienplatz, the dollar "weokened" considerably, Is this good nows or bad naws from the college student's point of view?
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