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Any Increase in the Demand for Foreign Exchange, Other Things

Question 86

Multiple Choice

Any increase in the demand for foreign exchange, other things constant, will _____


A) increase the number of foreign exchange units required to purchase dollars.
B) reduce the number of dollars required to purchase one unit of foreign exchange.
C) cause the dollar to depreciate.
D) cause the foreign currency to depreciate.
E) have no effect.

Correct Answer:

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