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What Will Happen to the Supply of Dollars, the Demand

Question 54

Essay

What will happen to the supply of dollars, the demand for dollars, and the equilibrium exchange rate of the dollar in each of the following cases?
a.Americans buy more European goods.
b.Europeans invest in U.S. stock market.
c.European tourists flock to United States.
d.Europeans buy U.S. government bonds.
e.American tourists flock to Europe.

Correct Answer:

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a.The supply of dollars increases, the d...

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