Suppose that the tastes of U.S.beer drinkers shift from domestic brands toward more expensive brands imported from Germany.If this change is large enough,it will cause the ___ for foreign currencies to increase,and the dollar to _______.

Question

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When U.S. beer drinkers shift their preference towards more expensive imported brands from Germany, they increase the demand for foreign currencies (to pay for these imports), which leads to the depreciation of the dollar as more dollars are needed to purchase the same amount of foreign currency.

Suppose That the Tastes of U