If the U.S. real exchange rate decreases, U.S. imports will ...

[panfilo]

If the U.S. real exchange rate decreases, U.S. imports will ________ and U.S. exports will ________.
 
  A) rise; rise B) rise; fall C) fall; rise D) fall; fall

Question 2

In the foreign exchange market, an increase in the supply of dollars could be the result of
 
  A) an increase in the expected future exchange rate.
  B) a decrease in the U.S. interest rate differential.
  C) a decrease in the exchange rate.
  D) an increase in the exchange rate.
  E) an increase in the U.S. interest rate differential.

[Anton]

Answer to Question 1

C

Answer to Question 2

B