Suppose the French decide they like American goods so much that they want to buy more from the United States. What is the MOST likely chain of events that will arise from this scenario?
A) The French compete with the Germans for euros used to purchase dollars; the euro appreciates, and the dollar depreciates; and U.S. goods become cheaper.
B) Americans supply more dollars; the dollar depreciates; and U.S. goods become less expensive.
C) Americans see the increased demand for U.S. goods and raise prices in the United States, which leads to an appreciation of the euro.
D) The French demand more dollars; the dollar appreciates; and U.S. goods become more expensive.
Correct Answer:
Verified
Q201: The Canadian dollar will depreciate against the
Q202: What happens if a recession hits the
Q203: If one nation is in an economic
Q204: Australian tourists planning a trip to the
Q205: The _ summarizes the flow of money
Q207: Inflation in one country causes its currency
Q208: Which country has its own national currency?
A)
Q209: The formula for calculating the net increase
Q210: Last year ABCD Corp., a New York
Q211: As the dollar appreciates, U.S. exports decrease,
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents