The "euro" is the official currency of 19 of the 28 member states of the European Union. On September 18, 2022, the U.S. dollar/ euro exchange rate was 0.9982/$. Note that this is really close to the 1 = $1 and is a big change from a year ago. One year earlier on September 18, 2021, the exchange rate was 0.8528/$. Both the euro and dollar freely float against each other and other country currencies.

a) How many dollars will one euro at the 2022 exchange rate and did one euro buy at the 2021 exchange rate? Hint: to find the $/ exchange rate, take the reciprocal of the /$ exchange rate.

b) What was the percentage change in value of the euro compared to the U.S. dollar from September 18, 2021 to September 18, 2022? Hint: when analyzing the percentage change in the value of a foreign currency compared to the dollar, the calculation depends on which currency is the quote or price currency (the currency that is variable). Let's all proceed with the euro being the quote currency (an indirect quote on the dollar), so use the /$ exchange rate.

c) Was the change in value of the euro as compared to the U.S. dollar depreciation, devaluation, appreciation, or revaluation? Briefly explain.