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Suppose the Canadians suddenly have a switch in taste from Japanese automobiles to American automobiles. On the following graph, indicate what happens to the demand
Suppose the Canadians suddenly have a switch in taste from Japanese automobiles to American automobiles. On the following graph, indicate what happens to the demand for U.S. dollars in the market for foreign-currency exchange as a result of this change in tastes. (?) Supply O Demand Supply Real Exchange Rate Demand Quantity of Dollars This causes the value of dollars in the market for foreign-currency exchange to , and the equilibrium quantity of net exports to
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