Us goods versus european goods

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Reference no: EM131493353

Suppose that American consumers decide to purchase fewer European goods for a given relative price of US and European goods. This change will affect the _______ for US goods versus European goods.

If relative demand of European goods decreases, the dollar will ______ in real terms. As a result of this change, the dollar will also________ in nominal terms in the long-run.

Reference no: EM131493353

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