Multiple Choice
Choose the letter of the diagram in Figure 36.2 that represents the shift in the foreign exchange market for dollars given the following situation,ceteris paribus: The Japanese remove some tariffs on American goods.
A) a.
B) b.
C) c.
D) D.The demand for the dollar in the foreign exchange market increases because Japanese buyers will be more inclined to purchase U.S.goods when Japan removes tariffs on American goods,leading to a rightward shift in the demand for dollars.
Correct Answer:
Verified
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