If US Inflation Suddenly Increased While European Inflation Stayed the Same

question 5

Multiple Choice

If U.S. inflation suddenly increased while European inflation stayed the same, there would be:​

• A) ​an increased U.S. demand for euros and an increased supply of euros for sale.
• B) ​a decreased U.S. demand for euros and an increased supply of euros for sale.
• C) ​a decreased U.S. demand for euros and a decreased supply of euros for sale.
• D) ​an increased U.S. demand for euros and a decreased supply of euros for sale.

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