3. Multiple Choice Question. If exchange rates are al- lowed to fluctuate freely and the euro-area countries' demand for Indian rupees increases, which of the following will most likely occur? A. The rupee price of euro-area goods will increase. B. The euro-area balance-of-payments surplus will increase. C. The euro price of rupees will fall. D. The euro price of Indian goods will increase.

3. Multiple Choice Question. If exchange rates are al- lowed to fluctuate freely and the euro-area countries' demand for Indian rupees increases, which of the following will most likely occur? A. The rupee price of euro-area goods will increase. B. The euro-area balance-of-payments surplus will increase. C. The euro price of rupees will fall. D. The euro price of Indian goods will increase.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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