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In recent times, America has experienced an increase in the demand for coffee. About 24% of its coffee beans are being imported from Brazil. What
In recent times, America has experienced an increase in the demand for coffee. About 24% of its coffee beans are being imported from Brazil. What happens when there is increase in the exchange rate of U.S. dollars against the Brazilian currency, the real? The cost of exported goods from Brazil to the United States will increase. The import of coffee beans will cost less for the Americans. The value of the Brazilian real will fall against all foreign currencies. The value of the exported goods from Brazil to rest of the world will fall. The value of the U.S. dollar decreases against the Brazilian real
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