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Everything Else Being Equal,a Decrease in the Supply of Dollars

Question 40

Multiple Choice

Everything else being equal,a decrease in the supply of dollars in exchange for pesos will cause the dollar ________ the quantity of dollars being traded in the foreign exchange market.


A) to appreciate against the peso and will decrease
B) to depreciate against the peso and will decrease
C) to appreciate against the peso and will increase
D) to depreciate against the peso and will increase

Correct Answer:

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