If the European Central Bank buys dollars with euros,this causes the euro to ________ against the dollar,assisting European ________.

Question

Quizplus · Accepted Answer

When the European Central Bank buys dollars with euros, it increases the supply of euros in the foreign exchange market while increasing the demand for dollars. This action causes the euro to depreciate against the dollar. A weaker euro makes European goods cheaper for American buyers, thus assisting European exporters of goods to America.

If the European Central Bank Buys Dollars with Euros,this Causes