In order to import German goods into the United States, U.S. importers

In order to import German goods into the United States, U.S. importers must buy those goods with German currency, i.e., Euros. Assume, all else constant, there is a decrease in the price of U.S.-made cars compared to the price of German cars.

Based on this information, we can conclude, with certainty, that in the market for Euros (where the price of Euros is measured in dollars), this would cause: A) an increase in the equilibrium price of Euros.
B) a decrease in the equilibrium price of Euros.
C) an increase in the equilibrium quantity of Euros.
D) a decrease in the equilibrium quantity of Euros.

ANSWER

B