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Author Question: US Exports After staying around 1.35 US dollars per Euro for years, the exchange rate fell below ... (Read 33 times)

SGallaher96

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on: Jul 1, 2018
US Exports After staying around 1.35 US dollars per Euro for years, the exchange rate fell below 1.25 US dollars to a euro during the summer of 2014 . What affect does this have US exports to Europe?

Question 2

____________is the problem of preventing you from acting opportunistically after buying insurance
 a. Moral hazard
 b. Adverse selection
  c. Decision making
 d. None of the above


missalyssa26

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Reply #1 on: Jul 1, 2018
Answer to Question 1

The demand for American goods by Europeans will fall because it takes more euros to convert into a given number of dollars to make a purchase. Likewise, Americans considering European goods now have to convert less dollars into euros to make purchases there. Both effects decrease US exports.

Answer to Question 2

a


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