European firms wishing to purchase American goods and services are ________ the foreign exchange market.

A. suppliers of U.S. dollars in
B. demanders of U.S. dollars in
C. demanders of Euros in
D. supplied dollars by the European Central Bank for use in

Answer: B

Economics

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Suppose the actual inflation rate is less than the anticipated inflation rate. Given this information, we know with certainty that the real rate of interest

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