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If the Fed Announces That It Will Decrease the U

Question 30

Multiple Choice

If the Fed announces that it will decrease the U.S. interest rates, and European Central Bank takes no action, then the value of euro will ____ against the value of U.S. dollar. The Fed's action is called ____ intervention.


A) appreciate; direct
B) depreciate; direct
C) appreciate; indirect
D) depreciate; indirect

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