What can you say about the dollar and euro

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Reference no: EM131182741

a- Consider that you are an individual purchasing euro in the US market. Graphically explain what would happen if the supply of the foreign currency goes up in the domestic market. what can you say about the dollar and euro?

b- Now consider that the European inflation falls down to 2% from 5%. the US inflation falls from 5% to 3%. what happens to the US demand for European goods? what happen to the value of the dollar?

Reference no: EM131182741

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