On October 25, 2000, the exchange rate was 0.8307 U.S. dollar per euro. It increased to 1.588
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On October 25, 2000, the exchange rate was 0.8307 U.S. dollar per euro. It increased to 1.588 U.S. dollars per euro on July 16, 2008, and then decreased to 1.0557 U.S. dollar per euro on March 16, 2015. If the euro is expected to bounce back to its 2008 exchange rate, explain how this would affect the demand for and the supply of euros in the foreign exchange market?
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