Question

In 2008 the exchange rate between euros and US dollars was 1 euro for $1.55 in 2019 the rate was 1 euro for 1.12

Answer 1

Answer: A.  In 2019, the United States had to lower its prices on goods sold to European nations.

Explanation:

In 2019 the Euro could be exchanged for less dollars than in 2008. This means that the U.S. Dollar got stronger. As a result, U.S. goods will now be more expensive in 2019 than they were in 2008 to a person using the Euros because they would now have to pay more to get the same goods they used to get.

In order to maintain profitability therefore, the U.S. will reduce its prices in 2019 so that people using the Euro would be able to purchase goods for the cheaper prices they had been able to purchase those goods in 2008.