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An Increase in the Supply of U

Question 10

Multiple Choice

An increase in the supply of U.S.dollars by the Federal Reserve will


A) raise the value of the dollar because it will stimulate U.S.economic growth
B) raise the value of the dollar because it will lead to higher U.S.interest rates
C) reduce the value of the dollar because of inflation fears in the United States
D) decrease the value of the dollar because it will force other countries to raise their interest rates

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