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If Consumers from Country X Greatly Increase Their Purchases of Products

Question 15

Multiple Choice

If consumers from Country X greatly increase their purchases of products from Country Y, the value of these two countries' currencies relative to one another will change in which of the following ways?


A) The values of both countries' currencies will increase.
B) The value of Country X's currency will increase; the value of Country Y's currency will decrease.
C) The value of Country X's currency will decrease; the value of Country Y's currency will increase.
D) The values of both countries' currencies will decrease.

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