Which of the Following Statements Is Most Accurate

Multiple Choice

Which of the following statements is most accurate?

A) In the output market, an increase in demand for U.S. output leads to an increase in the long-run nominal dollar/euro exchange rate.
B) In the output market, an increase in the demand for European output leads to an increase in the long-run nominal dollar/euro exchange rate.
C) In the output market, a decrease in demand for U.S. output leads to a decrease in the long-run nominal dollar/euro exchange rate.
D) In the output market, an increase in the demand for European output leads to a decrease in the long-run nominal dollar/euro exchange rate.
E) In the output market, an increase in the demand for European output leads to an increase in the long-run nominal euro/dollar exchange rate.