If U.S. residents boycotts French goods, this will

Question

Quizplus · Accepted Answer

Boycotting French goods would lead to a decrease in the demand for those goods. Since buying foreign goods typically requires purchasing the foreign currency, in this case, euros, a boycott would reduce the need for U.S. residents to exchange their dollars for euros. This decrease in demand for euros in the foreign exchange market would lead to a reduction in the demand for euros, not an increase or appreciation of the euro, nor would it have no effect.

If U.S. Residents Boycotts French Goods, This Will