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An Increase in the World Relative Demand for U

Question 44

Multiple Choice

An increase in the world relative demand for U.S. output causes


A) a short-run real depreciation of the dollar against the euro.
B) a long-run real appreciation of the dollar against the euro.
C) a long-run real depreciation of the dollar against the euro.
D) a short-run real appreciation of the euro against the dollar.
E) a long-run real appreciation of the euro against the dollar.

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