Use the Following Diagram to Answer the Following Questions

question 45

Multiple Choice

Use the following diagram to answer the following questions.

-Refer to Euros. Suppose the exchange rate Euros per dollar is currently E₁. There will be a tendency for:

• A) the price of imports to rise.
• B) the price of exports to rise.
• C) the price of exports to fall.
• D) the relative price of imports and exports to be unchanged.

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CRM

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