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Using demand and supply diagrams explain how each of the following might affect the value of the euro. Provide intuition for each of your answers
Using demand and supply diagrams explain how each of the following might affect the value of the euro. Provide intuition for each of your answers
a. Shares in American companies are perceived as having become less riskier financial investments compared to the European ones.
b. American households decide to purchase less German and French wine.
c. The Federal Reserve Bank (US central bank) decided to decrease its main refinancing interest rate while the ECB leaves its bank rate unchanged.
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