Ceteris paribus,if Americans decide they want to drive more German-made cars,this causes the ________ German currency to ________.

Question

Quizplus · Accepted Answer

If Americans decide they want to drive more German-made cars, this would increase the demand for German cars, causing an increase in the demand for Euros (since German cars are priced in Euros). This increase in demand for Euros would cause an appreciation in the value of the Euro (i.e. the currency would increase in value).

Ceteris Paribus,if Americans Decide They Want to Drive More German-Made