Suppose that the United States and European Union are the only trading partners in the world. If the European Union imposes some import tariffs on U.S. goods, we would expect:
A) the supply of the euro to decrease, depreciating the euro.
B) the demand for the dollar to decrease, depreciating the dollar.
C) the demand for the dollar to increase, appreciating the dollar.
D) the supply of the dollar to decrease, depreciating the dollar.
Correct Answer:
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