Will the increase in u.s. growth affect the demand for euro

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Reference no: EM13184277

Draw a diagram for the foreign exchange market for the dollar vs. the euro. Model your diagream on figure 10.3. Place "euros per dollar" on the vertical axis. Suppose now that rapid growth of the U.S. economy increases U.S. demand for European goods, while there is no change in growth of countries using the euro. Will the increase in U.S. growth affect the demand for ereos, the supply of eruos, both, or neither.? Why? Will the result be an appreciate, depreciation, or no change in the euro? Why?

Reference no: EM13184277

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