Suppose us interest rates decline compared to the rest of


How will a stronger euro affect the following economic agents?

1-1)A British exporter to Germany.

1-2)A Dutch tourist visiting Chile.

1-3)A Greek bank investing in a Canadian government bond.

1-4)A French exporter to Germany

2. Suppose U.S. interest rates decline compared to the rest of the world. What would be the likely impact on the demand for dollars, supply of dollars, and exchange rate for dollars compared to, say, euros?

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