The currency of Iceland is called the Krona. in July, 2007 the exchange rate was roughly 69 krona to a dollar. In July 2011, the exchange rate was roughly 120 krona to a dollar.

a) Over this period, would you expect exports from the US to Iceland to get cheaper or more expensive in Iceland?

b) Would you expect living standards in Iceland to rise or fall?

c) Is the krona appreciating or depreciating against the dollar?