One cartoon in the text shows a tourist on a far-off island saying, "How can I relax, knowing that out there, somewhere, somehow, someone's attacking the dollar?" Which of the following shifts in the foreign exchange market is the tourist concerned about?

Question

Quizplus · Accepted Answer

The tourist is concerned about a rightward shift of supply and a leftward shift of demand for the dollar, which would lead to a decrease in the value of the dollar. This could be caused by factors such as a decrease in foreign investment in the US or an increase in US exports, which would lead to more dollars entering the foreign exchange market and a decrease in demand for the dollar.

One Cartoon in the Text Shows a Tourist on a Far-Off