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Chako Chako
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8 years ago
Given PUS and YUS
A) An increase in the European money supply causes the euro to depreciate against the dollar, and it creates excess demand for dollars in the U.S. money market.
B) An increase in the European money supply causes the euro to depreciate against the dollar, and disturbing the U.S. money market equilibrium.
C) An increase in the European money supply causes the euro to appreciate against the dollar, but it does not disturb the U.S. money market equilibrium.
D) An increase in the European money supply causes the euro to depreciate against the dollar, but it does not disturb the U.S. money market equilibrium.
E) An increase in the European money supply causes the euro to appreciate against the dollar, and it creates excess demand for dollars in the U.S. money market.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
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machukianmachukian
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8 years ago
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Chako Author
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#2
8 years ago
Correct!
wrote...
#3
8 years ago
Good luck
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