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If the Exchange Rate Is Constant and U

Question 3

Multiple Choice

If the exchange rate is constant and U.S.imports increase, then in the foreign exchange market the


A) quantity of U.S.dollars supplied decreases.
B) quantity of U.S.dollars supplied increases.
C) supply of U.S.dollars decreases.
D) supply of U.S.dollars increases.
E) demand for U.S.dollars increases.

Correct Answer:

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