Question: Which of the following would cause a decrease in the demand for euros by those holding U.S. dollars? a. Inflation in France, but not in

Which of the following would cause a decrease in the demand for euros by those holding U.S.

dollars?

a. Inflation in France, but not in the United States

b. Inflation in the United States, but not in France

c. An increase in the real rate of interest on investments in France above the real rate of interest on investments in the United States

d. None of the above

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