Question

Suppose Europeans began purchasing real assets in the United States. How would this impact the foreign exchange market for the euro and the U.S. dollar price of the euro?

A. Increase / Increase
B. Increase / Decrease
C. Decrease / Increase
D. Decrease / Decrease
E. Decrease/ Not change

Answer 1

(B) Increase / Decrease

Step-by-step explanation:

The supply of euro will increase and U.S. dollar price of euro will decrease