Other things the same,if the price level falls,households
A) increase foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange increases.
B) increase foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange decreases.
C) decrease foreign bond purchases, so the supply of dollars in market for foreign-currency exchange increases.
D) decrease foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange decreases.
Correct Answer:
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