If a currency such as the US$ is traded in a competitive market,a(n)________ in demand for the US$ ________ the price of the US$ in terms of another currency such as the Yen (¥).

Question

Quizplus · Accepted Answer

According to the law of demand, an increase in demand leads to an increase in price. Therefore, an increase in demand for the US dollar will raise its price in terms of another currency like the Yen.

If a Currency Such as the US$ Is Traded in a Competitive