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Figure: Change in the Demand for U.S. Dollars
-(Figure: Change in the Demand for U.S. Dollars) Look at the figure Change in the Demand for U.S. Dollars. A movement from E₁ to E₂ in this foreign exchange market would cause Americans to purchase _____ goods and services from Europe.

Question

Use the following to answer questions :
Figure: Change in the Demand for U.S. Dollars

-(Figure: Change in the Demand for U.S. Dollars) Look at the figure Change in the Demand for U.S. Dollars. A movement from E₁ to E₂ in this foreign exchange market would cause Americans to purchase _____ goods and services from Europe.

Quizplus · Accepted Answer

As the figure shows a shift to the right in the demand for U.S. dollars, this means that Americans would be able to purchase more goods and services from Europe with the same amount of dollars. Therefore, the answer is C.

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