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This Question: 1 pt As the dollar price of a euro falls, A. French goods will be less expensive to U.S. residents. O B. U.S. residents will purchase fewer French imports. O C. the quantity of euros supplied will increase. 0 D. French residents will increase their purchases of U.S. assets. Click to select your answer esc OU F3
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Answer #1

Option A

Explanation: When the dollar price of euro falls, this means less amount of dollar is needed to buy a particular amount of euro. This means the dollar has appreciated with respect to the euro. Therefore, European goods will be cheaper for American consumers and they will import more European goods.

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