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Question 87

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Assume that U.S. and European governments adopt a system of flexible exchange rates, and the figure below shows the market for euros. Assume that U.S. and European governments adopt a system of flexible exchange rates, and the figure below shows the market for euros.   Refer to the graph above. If more people in Europe decide to purchase U.S. cars, what effect will this have on the market for euros? A)  Demand will decrease B)  Demand will increase C)  Supply will increase D)  Supply will decrease Refer to the graph above. If more people in Europe decide to purchase U.S. cars, what effect will this have on the market for euros?


A) Demand will decrease
B) Demand will increase
C) Supply will increase
D) Supply will decrease

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