Multiple Choice
If the U.S.inflation rate rises to the foreign inflation rate, then in the foreign exchange market
A) the demand for dollars increases, and the supply of dollars increases.
B) the demand for dollars increases, and the supply of dollars decreases.
C) the demand for dollars decreases, and the supply of dollars increases.
D) the demand for dollars decreases, and the supply of dollars decreases.
Correct Answer:

Verified
Correct Answer:
Verified
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