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Consider the market to exchange British pounds for dollars. The demand curve for British pounds slopes downwards because a reduction in the exchange rate (E
Consider the market to exchange British pounds for dollars. The demand curve for British pounds slopes downwards because a reduction in the exchange rate (E $/pound) makes
a. | British goods cheaper in the U.S., increasing U.S. imports from Britain | |
b. | American goods more expensive in Britain, decreasing U.S. exports to Britain | |
c. | Both A and B | |
d. | None of the above |
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