All Else Equal, If the Exchange Rate of the Dollar

question 29

Multiple Choice

All else equal, if the exchange rate of the dollar against the euro increases,

• A)German goods will be less expensive to U.S.residents.
• B)U.S.residents will purchase fewer German imports
• C)the quantity of euros supplied will increase.
• D)German residents will increase their purchases of U.S.goods.
• E)inflation in the U.S.will increase.