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Given a System of Floating Exchange Rates,weaker U

Question 6

Multiple Choice
Given a system of floating exchange rates,weaker U.S.preferences for imports would trigger:
A) An increase in the demand for imports and an increase in the demand for foreign currency
B) An increase in the demand for imports and a decrease in the demand for foreign currency
C) A decrease in the demand for imports and an increase in the demand for foreign currency
D) A decrease in the demand for imports and a decrease in the demand for foreign currency

Given a system of floating exchange rates,weaker U.S.preferences for imports would trigger:


A) An increase in the demand for imports and an increase in the demand for foreign currency
B) An increase in the demand for imports and a decrease in the demand for foreign currency
C) A decrease in the demand for imports and an increase in the demand for foreign currency
D) A decrease in the demand for imports and a decrease in the demand for foreign currency

Correct Answer:

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