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If International Speculators Lose Confidence in Foreign Economies and Want

Question 348

Multiple Choice

If international speculators lose confidence in foreign economies and want to move some of their wealth into the U.S.economy,then in the short run there is


A) an increase in the value of the U.S.dollar in foreign exchange markets,a lower level of U.S.output and a lower U.S.price level.
B) an increase in the value of the U.S.dollar in foreign exchange markets,a higher level of U.S.output and a higher U.S.price level.
C) a decrease in the value of the U.S.dollar in foreign exchange markets,a lower level of U.S.output and a lower U.S.price level.
D) a decrease in the value of the U.S.dollar in foreign exchange markets,a lower level of U.S.output and a higher U.S.price level.

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