As inflation in France increases and stays the same in the U.S., the exchange rate of the euro to the dollar will increase.

Name: As inflation in France increases and stays the same in the U.S., the exchange rate of the euro to the dollar will increase.
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Question

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If inflation in France increases while it remains stable in the U.S., the euro is likely to depreciate against the dollar, leading to a decrease in the exchange rate of the euro to the dollar.

As Inflation in France Increases and Stays the Same in the U.S