If one U.S. dollar equals one E.U. euro which of these could result if the euro expe E.U. citizens could purchase more goods in the U.S for less money. E.U. citizens would purchase large amounts of U.S stock. U.S. citizens would purchase more goods from the E U. for less money. U.S. citizens would purchase large amounts of E.U stock. Question 7 (Multiple Choice Worth 5 points)

## Step 1<br />The problem is about the effects of currency exchange rates on the purchasing power of consumers in different countries. The exchange rate given is 1 U.S. dollar equals 1 E.U. euro.<br /><br />## Step 2<br />If the euro appreciates, it means that the value of the euro increases in relation to the U.S. dollar. This implies that with the same amount of euros, a U.S. consumer can buy more goods or services than before.<br /><br />## Step 3<br />Therefore, the correct answer is that U.S. citizens would purchase more goods from the E.U for less money. This is because the appreciation of the euro would make goods and services from the E.U cheaper for U.S. consumers.