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The following questions refer to the graph below. Explain the effect of a decrease in national income in Germany on the U.S. dollar. The Dollar

The following questions refer to the graph below.

Explain the effect of a decrease in national income in Germany on the U.S. dollar. The Dollar will either appreciate or depreciate, and exports, imports, the Aggregate Demand and the GDP will either increase or decrease.

Market for Dollars Exchange Rate Supply of Dollars Euro Price Per Dollar * Demand for Dollars $1- Quantity of Dollars

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