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If Speculators Bid Up the Value of the U

Question 39

Multiple Choice

If speculators bid up the value of the U.S.dollar in the market for foreign exchange,then


A) U.S.goods become more expensive relative to foreign goods so aggregate demand shifts right.
B) U.S.goods become less expensive relative to foreign goods so aggregate demand shifts right.
C) U.S.goods become more expensive relative to foreign goods so aggregate demand shifts left.
D) U.S.goods become less expensive relative to foreign goods so aggregate demand shifts left.

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