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All Else Equal, If the Exchange Rate of the Dollar

Question 29

Multiple Choice

All else equal, if the exchange rate of the dollar against the euro increases,


A) German goods will be less expensive to U.S.residents.
B) U.S.residents will purchase fewer German imports
C) the quantity of euros supplied will increase.
D) German residents will increase their purchases of U.S.goods.
E) inflation in the U.S.will increase.

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