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All Else Being Equal,an Increase in the Foreign Demand for U.S.goods

Question 5

Multiple Choice

All else being equal,an increase in the foreign demand for U.S.goods causes the demand for dollars to ________ and the dollar will ________ relative to foreign currencies.


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

Correct Answer:

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