The euro zone is now the largest economy in the world.If the European central bank raises its interest rates,we expect __________ because __________.
A) the U.S.IS curve to shift right;the dollar would depreciate relative to the euro
B) the U.S.IS curve to shift left;the dollar would appreciate relative to the euro
C) the U.S.IS curve to not move;the dollar would depreciate relative to the euro
D) rightward movement along the U.S.IS curve;the dollar would depreciate relative to the euro
E) leftward movement along the U.S.IS curve;the dollar would appreciate relative to the euro
Correct Answer:
Verified
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