An increase in U.S. exports will the demand for dollars and lead the dollar to .

Question

Quizplus · Accepted Answer

When there is an increase in U.S. exports, it means that there will be an increase in the demand for dollars as foreign countries will need to purchase more dollars to pay for the exported goods. This increase in demand for dollars will lead to an appreciation in the value of the dollar, making it stronger against other currencies. Therefore, the correct choice is D, increase in demand for dollars will lead to an appreciation of the dollar.

An Increase in U