Because of the emissions testing scandal at Volkswagen,Australians develop an aversion to German cars relative to cars manufactured in Australia.This will,ceteris paribus,
A) decrease the demand for German cars relative to Australian cars, decrease the demand for the euro, and cause the euro depreciate against the dollar.
B) increase the demand for German cars relative to Australian cars, increase the demand for the euro, and cause the euro appreciate against the dollar.
C) decrease the demand for German cars relative to Australian cars, decrease the demand for the euro, and cause the euro appreciate against the dollar.
D) increase the demand for German cars relative to Australian cars, decrease the demand for the euro, and cause the euro depreciate against the dollar.
Correct Answer:
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