5)  Indicate whether each of the following creates a demand for or a supply of European euros in foreign exchange markets: a.  Liberty purchases an Airbus plane assembled in France b.  Mercedes-Benz decides to build an assembly plant in Knoxville c.  A Liberty student decides to spend a year studying at the Sorbonne in Paris d.  An Italian manufacturer ships machinery from Rome to Venice on an Egyptian freighter e.  It is widely expected that the euro will depreciate in the near future

Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
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Chapter32: A Macroeconomic Theory Of The Open Economy
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5)  Indicate whether each of the following creates a demand for or a supply of European euros in foreign exchange markets:

a.  Liberty purchases an Airbus plane assembled in France

b.  Mercedes-Benz decides to build an assembly plant in Knoxville

c.  A Liberty student decides to spend a year studying at the Sorbonne in Paris

d.  An Italian manufacturer ships machinery from Rome to Venice on an Egyptian freighter

e.  It is widely expected that the euro will depreciate in the near future

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