Ceteris paribus,if the French decide they want to drink more Chinese-grown tea,this causes the ________ Chinese currency to ________.

Question

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If the French decide to drink more Chinese-grown tea, this would increase their demand for Chinese tea. Increased demand would result in an increase in the price of Chinese tea. This, in turn, would cause an increase in the demand for Chinese currency as other countries would need to buy more Chinese currency to purchase the more expensive Chinese tea. Therefore, the demand for Chinese currency would increase.

Ceteris Paribus,if the French Decide They Want to Drink More