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If the Exchange Rate Is Constant and U

Question 216

Multiple Choice

If the exchange rate is constant and U.S.exports increase, then in the foreign exchange market the


A) quantity of U.S.dollars demanded decreases.
B) quantity of U.S.dollars demanded increases.
C) demand for U.S.dollars decreases.
D) demand for U.S.dollars increases.
E) supply of U.S.dollars increases.

Correct Answer:

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