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Given a System of Floating Exchange Rates, Weaker U

Question 35

Multiple Choice

Given a system of floating exchange rates, weaker U.S.preferences for imports would trigger


A) an increase in the demand for imports and an increase in the demand for foreign currency.
B) an increase in the demand for imports and a decrease in the demand for foreign currency.
C) a decrease in the demand for imports and an increase in the demand for foreign currency.
D) a decrease in the demand for imports and a decrease in the demand for foreign currency.

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