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Author Question: If the value of the U.S. dollar changes from 1.2 euros to 1.4 euros, we would expect that the United ... (Read 92 times)

Cooldude101

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on: Jun 29, 2018
If the value of the U.S. dollar changes from 1.2 euros to 1.4 euros, we would expect that the United States would experience a ________ in exports and a ________ in imports.
 
  A) rise; rise B) fall; fall C) rise; fall D) fall; rise

Question 2

When there is a shortage of dollars in the foreign exchange market, the
 
  A) U.S. exchange rate will appreciate.
  B) supply curve of dollars shifts rightward to restore the equilibrium.
  C) demand curve for dollars shifts leftward to restore the equilibrium.
  D) U.S. exchange rate will depreciate.
  E) supply curve of dollars shifts leftward to restore the equilibrium.
International Business ¦ Daniels, Radebaugh, Sullivan ¦ 16th Edition
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Chelseyj.hasty

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

A


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