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The Euro Zone Is Now the Largest Economy in the World.If

Question 76

Multiple Choice

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

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