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When There Is a Shortage of Dollars in the Foreign

Question 199

Multiple Choice

When there is a shortage of dollars in the foreign exchange market, the


A) demand curve for dollars shifts leftward to restore the equilibrium.
B) U.S.exchange rate will appreciate.
C) U.S.exchange rate will depreciate.
D) supply curve of dollars shifts leftward to restore the equilibrium.
E) supply curve of dollars shifts rightward to restore the equilibrium.

Correct Answer:

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