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If the Current Exchange Value of the Dollar Is $1

Question 36

Multiple Choice

If the current exchange value of the dollar is $1.25 per euro, then


A) European Investor #1 has less incentive to invest in the United States and thus demands fewer dollars.
B) European Investor #2 has less incentive to invest in the United States and thus demands fewer dollars.
C) European Investor #3 has less incentive to invest in the United States and thus demands fewer dollars.
D) all three European investors have less incentive to invest in the United States and thus demands fewer dollars.

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