In the market for euros, an increase in the relative safety of U.S. investments tends to

Name: In the market for euros, an increase in the relative safety of U.S. investments tends to
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in the relative safety of U.S. investments would reduce the demand for euros since investors would prefer to invest in U.S. investments instead of those denominated in euros. This would cause a decrease in demand for euros, resulting in a decrease in equilibrium price.

In the Market for Euros, an Increase in the Relative