In the dollar-euro foreign exchange market, if many financial investors become worried about the stability of the euro and thus invest in U.S. financial assets instead of in European assets, then the
A) supply of euros will decrease and the euro will appreciate.
B) supply of euros will increase and the euro will depreciate.
C) demand for euros will increase and the euro will appreciate.
D) demand for U.S. dollars will decrease and the dollar will depreciate.
Correct Answer:
Verified
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