
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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Q5: When the price of foreign currency (i.e.,the
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Q10: For the United States,suppose the annual interest
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