In order to support an undervalued euro,the European Central Bank must ________ dollars.Over time,this action will cause the rate of inflation in the EU to ________.

Question

Quizplus · Accepted Answer

To support an undervalued euro, the European Central Bank would buy dollars, which increases the demand for euros, thereby supporting or increasing its value. Over time, increasing the money supply (through buying dollars) can lead to higher inflation rates in the EU.

In Order to Support an Undervalued Euro,the European Central Bank