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An Appreciation of the Euro Relative to the Dollar Causes

Question 46

Multiple Choice

An appreciation of the euro relative to the dollar causes


A) Europeans to buy fewer Canadian goods,which will generate an increase in the quantity supplied of dollars.
B) the quantity demanded of euros to increase as Canadians want to buy more European products.
C) the quantity supplied of euros to increase because the lower euro-price for Canadian goods induces Europeans to increase their buying of Canadian products.
D) the Bank of Canada to increase the supply of dollars to the world economy.

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