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Suppose That Prices in France Increase by 8 Percent While

Question 91

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Suppose that prices in France increase by 8 percent while prices in the United States remain relatively stable.We would expect that (on the foreign exchange market) the demand for U.S.dollars will __________ and the supply of U.S.dollars will __________.


A) increase; decrease
B) increase; increase
C) decrease; decrease
D) decrease; increase

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