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If Proportion of Money Individuals Want to Hold Increases in the U.S

Question 3

Multiple Choice

If proportion of money individuals want to hold increases in the U.S. and the proportion of money individuals want to hold remains constant in the EU then:


A) the dollar should appreciate in nominal terms.
B) the dollar should depreciate in nominal terms.
C) the dollar should appreciate in real terms.
D) the dollar should depreciate in real terms.

Correct Answer:

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