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When There Is a Shortage of Dollars in the Foreign

Question 30

Multiple Choice

When there is a shortage of dollars in the foreign exchange market, the


A) supply curve of dollars shifts rightward to restore the equilibrium.
B) demand curve for dollars shifts leftward to restore the equilibrium.
C) supply curve of dollars shifts leftward to restore the equilibrium.
D) U.S. exchange rate will appreciate.
E) U.S. exchange rate will depreciate.

Correct Answer:

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