Assume That the Vertical Axis of the Graph for the Foreign

question 73

Multiple Choice

Assume that the vertical axis of the graph for the foreign exchange market measures the exchange rate in euros per dollar. As the exchange rate rises

• A) American products become more attractive and more dollars are desired.
• B) the euro can buy more dollars.
• C) American goods become less attractive and fewer dollars are demanded.
• D) the dollar depreciates against the euro.

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