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The U.S. and Brazil are trading partners. Holding all else constant, which of the following is expected to increase the supply of Brazilian real in
The U.S. and Brazil are trading partners. Holding all else constant, which of the following is expected to increase the supply of Brazilian real in the foreign currency market?
1.Depreciation of the Brazilian real.
2.Higher US relative real interest rates.
3.Higher Brazilian relative real interest rates.
4.Lower relative inflation in Brazil.
5.Appreciation of the US dollar.
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