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4) The United States has floating exchange rates. Suppose there is an increase in inflation in the United States. What will happen? A) The U.S.

4) The United States has floating exchange rates. Suppose there is an increase in inflation in the United States. What will happen? A) The U.S. central bank will sell U.S. currency so the exchange rate remains constant B) The U.S. central bank will buy Euros so the exchange rate remains constant C) The exchange rate (price of a dollar) will go up D) The exchange rate (price of a dollar) will go down

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