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Question 6 With wars going on oversean, we are witnessing political instability abroad. If you are an nternational investor, this could make you worry that the value of your assets in these countries will decline, so you are considering purchasing more assets investnments in the United States. What would happen to the US dollar? O t would depreciate in foreign exchange markets making US. goods less expensive compared to foreign goods O h would depreciate in foreign exchange markets making US. goods more expensive compared to foreign goods. O would appreciate in foreign exchange markets making U.S goods more expensive compared to foreign goods O t would appeciate in foreign exchange markets making US. goods less expenaive compared to foreign goods.

Question 6 With wars going on oversean, we are witnessing political instability abroad. If you are an nternational investor, this could make you worry that the value of your assets in these countries will decline, so you are considering purchasing more assets investnments in the United States. What would happen to the US dollar? O t would depreciate in foreign exchange markets making US. goods less expensive compared to foreign goods O h would depreciate in foreign exchange markets making US. goods more expensive compared to foreign goods. O would appreciate in foreign exchange markets making U.S goods more expensive compared to foreign goods O t would appeciate in foreign exchange markets making US. goods less expenaive compared to foreign goods.

Brief Principles of Macroeconomics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Open-economy Macroeconomics: Basic Concepts
Section: Chapter Questions
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Question 6 With wars going on overseas, we are witnessing political instability abroad. If you are an international investor, this could make you worry that the value of your assets in these countries will decline, so you are considering purchasing more assetsimestments in the United States. What would happen to the US dollar? O It would depreciate in foreign exchange markets making US. goods less expensive compared to foreign goods O In would depreciate in foreign exchange markets making US. goods more expensive compared to foreign goods O would appreciate in foreign exchange markets making U.S goods more expensive compared to foreign goods. O It would appreciate in foreign exchange markets making US. goods less expensive compared to foreign goods
Transcribed Image Text:Question 6 With wars going on overseas, we are witnessing political instability abroad. If you are an international investor, this could make you worry that the value of your assets in these countries will decline, so you are considering purchasing more assetsimestments in the United States. What would happen to the US dollar? O It would depreciate in foreign exchange markets making US. goods less expensive compared to foreign goods O In would depreciate in foreign exchange markets making US. goods more expensive compared to foreign goods O would appreciate in foreign exchange markets making U.S goods more expensive compared to foreign goods. O It would appreciate in foreign exchange markets making US. goods less expensive compared to foreign goods
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