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Question
Suppose, that participants in the underground economy in Europe suddenly decide to switch from using dollars to using euros. Thus, they supply a huge volume of dollars to the market in exchange for euros. As a result,a. the dollar appreciates and the euro depreciates.
b. the dollar and the euro both appreciate.
c. the dollar depreciates and the euro appreciates.
d. the dollar and the euro both depreciate.
Answer
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