Question

All else being equal, an increased demand for U.S. products in the European Union will create a A.)supply of euros. B.)surplus of euros. C.)shortage of euros. D.)demand for euros.

Answer 1

Answer:

Correct Answer:

B.)surplus of euros.

Explanation:

United States of America as one of the most industrialized country with factories and firms producing goods and services engages in trade with other countries. Should their goods and services be demanded by European countries, it would create surplus of Euros due to the fact that, all the goods would be paid for by the common currency used by the European countries which is Euros.