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With Everything Else the Same, in the Foreign Exchange Market

Question 12

Multiple Choice

With everything else the same, in the foreign exchange market the


A) larger the value of U.S. exports, the greater is the quantity of dollars demanded.
B) lower the exchange rate, the smaller the amount of U.S. exports.
C) the lower the exchange rate, the smaller is the expected profit from buying dollars.
D) the higher the exchange rate, the cheaper are U.S.-produced goods and services.

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