Multiple Choice
Other things the same,if the U.S.price level rises,then
A) the supply of dollars in the market for foreign-currency exchange increases,so the exchange rate rises.
B) the supply of dollars in the market for foreign-currency exchange increases,so the exchange rate falls.
C) the supply of dollars in the market for foreign-currency exchange decreases,so the exchange rate rises.
D) the supply of dollars in the market for foreign-currency exchange decreases,so the exchange rate falls.
Correct Answer:

Verified
Correct Answer:
Verified
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