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US Residents Come to Believe That the Dollar Will Appreciate

Question 103

Multiple Choice

U.S. residents come to believe that the dollar will appreciate in the future, that is, the exchange rate in the future will be higher than the current exchange rate. As a result


A) the demand curve for dollars shifts rightward.
B) the demand curve for dollars shifts leftward.
C) there is a movement downward along the demand curve for dollars.
D) None of the above answers are correct.

Correct Answer:

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