New rate by intervening in the foreign exchange market

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Reference no: EM13976869

Suppose that the U.S. government devalues the dollar by 10% and maintains the new rate by intervening in the foreign exchange market. The ________ of ________ will ________, ceteris paribus.

A) supply; $; increase

B) demand; $; decrease

C) supply; foreign currencies; increase

D) demand; foreign currencies; decrease

Reference no: EM13976869

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