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If There Is an Increase in the U

Question 15

Multiple Choice

If there is an increase in the U.S. demand for European goods, then


A) both the dollar and the euro will appreciate.
B) both the dollar and the euro will depreciate.
C) the dollar will depreciate against the euro.
D) the dollar will appreciate against the euro.
E) the exchange rate between the dollar and the euro will remain unchanged, but their exchange rates will appreciate against other currencies.

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