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Under a System of Floating Exchange Rates,relatively Low Productivity and High

Question 11

Multiple Choice

Under a system of floating exchange rates,relatively low productivity and high inflation rates in the United States result in:


A) An increase in the demand for foreign currency,a decrease in the supply of foreign currency,and a depreciation in the dollar
B) An increase in the demand for foreign currency,an increase in the supply of foreign currency,and an appreciation in the dollar
C) A decrease in the demand for foreign currency,a decrease in the supply of foreign currency,and a depreciation in the dollar
D) A decrease in the demand for foreign currency,an increase in the supply of foreign currency,and an appreciation in the dollar

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