A sudden appreciation of the Euro against the Songland dollar has occurred. Which of the following statements best explains the potential effects of this currency shift on the economy of Songland?

When the Euro becomes stronger compared to the Songland dollar, it means that people in Songland will need more of their own currency to buy goods or services priced in Euros. This can lead to more expensive imports from Eurozone countries, making products like electronics or cars more costly for consumers in Songland. As a result, people might buy fewer imported goods, which could hurt businesses that rely on selling these products. On the other hand, if Songland exports products to Eurozone countries, those goods might become cheaper for buyers there, potentially boosting exports. For example, if a Songland-made toy costs 10 dollars, and the Euro strengthens, a buyer in Europe might find it easier to purchase that toy, leading to increased sales for Songland's toy manufacturers.