Suppose that the United States and European Union are the only trading partners in the world. If the United States lowers import restrictions from the European Union, we would expect:
A) the demand for euros to increase, appreciating the euro.
B) the demand for the dollar to increase, appreciating the dollar.
C) the supply of dollars to increase, appreciating the dollar.
D) the supply of euros to increase, depreciating the euro.
Correct Answer:
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