If last year one dollar equaled one euro, and then the exchange rate shifted so that today one dollar equals two euros, which of the following would most likely NOT occur?
A) European firms would pay more for raw materials imported from the United States.
B) European consumers would purchase fewer U.S. products and services.
C) Fewer Europeans would travel to the U.S. or study at U.S. universities.
D) U.S. exports to Europe would increase.
Correct Answer:
Verified
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