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Anything That Increases the Demand for Foreign Goods Relative to Domestic

Question 38

Multiple Choice

Anything that increases the demand for foreign goods relative to domestic goods tends to ________ the domestic currency because domestic goods will only continue to sell well if the value of the domestic currency is ________,everything else held constant.


A) depreciate;lower
B) depreciate;higher
C) appreciate;lower
D) appreciate;higher

Correct Answer:

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