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S Inflation Suddenly Becomes Much Higher Than European Inflation, the U.S

Question 28

Multiple Choice

S. inflation suddenly becomes much higher than European inflation, the U.S. demand for European goods will ____. In addition, the supply of euros to be sold for dollars will ____; both forces will place ____ pressure on the value of the euro.


A) increase; decline; upward
B) increase; decline; downward
C) decrease; increase; upward
D) decrease; increase; downward
E) none of the above

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