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Suppose That the Exchange Value of the Dollar Currently Equals

Question 50

Multiple Choice

Suppose that the exchange value of the dollar currently equals 100 yen.As a result of changing economic conditions,suppose that people anticipate that the dollar will be worth 120 yen in three months.This expectation results in


A) an increase in the value of U.S.exports to Japan
B) an increase in the demand for the yen
C) a decrease in the demand for dollars
D) an increase in the demand for dollars

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