Which of the Following Will Shift the Demand for the Euro

question 16

Multiple Choice

Which of the following will shift the demand for the euro to the right?

• A)an increase in interest rates in the European Union
• B)an increase in incomes in countries that buy goods from the European Union
• C)expectations among speculators that the price of the euro will rise in the future
• D)All of the above will shift the demand for the euro to the right.

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Definitions:

Consumer Incomes

The total amount of income received by consumers, influencing their purchasing power and demand for goods and services.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, contrasting with normal goods.

Substitute

A good or service that can be used in place of another good or service, often due to similarities in features or functions.

Expensive

Describing an item or service that has a high cost or price relative to its perceived value or compared to other options.