With Everything Else the Same, in the Foreign Exchange Market

question 12

Multiple Choice

With everything else the same, in the foreign exchange market the

• A) larger the value of U.S. exports, the greater is the quantity of dollars demanded.
• B) lower the exchange rate, the smaller the amount of U.S. exports.
• C) the lower the exchange rate, the smaller is the expected profit from buying dollars.
• D) the higher the exchange rate, the cheaper are U.S.-produced goods and services.

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