Multiple Choice
A simultaneous increase in U.S. demand for German products and decrease in the desire of German investors to send funds to the United States would, under a flexible exchange Rate system and with other things equal, lead to __________ of the U.S. dollar against the euro and to __________ of the euro against the dollar.
A) an appreciation; a depreciation
B) an appreciation; an appreciation
C) a depreciation; a depreciation
D) a depreciation; an appreciation
Correct Answer:
Verified
Correct Answer:
Verified
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