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Under a System of Flexible Exchange Rates, a Decrease in the Demand

Question 102

Multiple Choice

Under a system of flexible exchange rates, a decrease in the demand for a country's currency on the foreign exchange market will:


A) ​cause the country's currency to depreciate in value.
B) ​cause the country's currency to appreciate in value.
C) ​make the country's goods more expensive to foreigners.
D) ​make foreign goods less expensive to the country's citizens.

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