Question: Exchange market for US dollar is at initial equilibrium E1. Boeing sells 20 commercial planes to British Airlines. The Boeings deal will _________ a. decrease

Exchange market for US dollar is at initial equilibrium E1. Boeing sells 20 commercial planes to British Airlines. The Boeings deal will _________

a. decrease demand for US dollar in the currency market and dollar will depreciate.
b. decrease supply of US dollar in the currency market and dollar will appreciate.
c. increase supply of US dollar in the currency market and dollar will depreciate.
d. increases demand for US dollar in the currency market and dollar will appreciate.

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