If U.S. inflation suddenly increased while European inflation stayed the same, there would be:
A. an increased U.S. demand for Euros and an increased supply of Euros for sale.
B. a decreased U.S. demand for Euros and an increased supply of Euros for sale.
C. a decreased U.S. demand for Euros and a decreased supply of Euros for sale.
D. an increased U.S. demand for Euros and a decreased supply of Euros for sale.
Answer:D
If U.S. inflation suddenly increased while European inflation stayed the same, there would be:
A. an increased U.S. demand for Euros and an increased supply of Euros for sale. B. a decreased U.S. demand for Euros and an increased supply of Euros for sale. C. a decreased U.S. demand for Euros and a decreased supply of Euros for sale. D. an increased U.S. demand for Euros and a decreased supply of Euros for sale.