The United States trades with many countries within the European Union. If the U.S. economy falls into a recession, the U.S. demand for imports will _____, leading to a _____ shift in the demand for the euro.

Question

Quizplus · Accepted Answer

If the U.S. economy falls into a recession, the U.S. demand for imports will fall due to decreased consumer spending and business investment. This will lead to a leftward shift in the demand for the euro, as the U.S. will need to purchase fewer euros to pay for imports.

The United States Trades with Many Countries Within the European