Assume That the Fed Intervenes by Exchanging Dollars for Euros

Assume that the Fed intervenes by exchanging dollars for euros in the foreign exchange market. This will cause an ____ U.S. dollars and an ____ euros.

A) inward shift in demand for; outward shift in supply of
B) inward shift in demand for; inward shift in supply of
C) outward shift in supply of; outward shift in demand for
D) outward shift in supply of; inward shift in demand for

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