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Suppose That Canada and the European Union Are the Only

Question 105

Multiple Choice

Suppose that Canada and the European Union are the only trading partners in the world.If the European Union imposes some import tariffs on Canadian goods,we would expect the:


A) supply of euros to decrease,depreciating the euro.
B) demand for dollars to decrease,depreciating the dollar.
C) demand for dollars to increase,appreciating the dollar.
D) supply of dollars to decrease,depreciating the dollar.

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