Figure 15-1
-Refer to Figure 15-1. The demand curve of dollars represents
I. U.S. purchases of imported goods and services.
II. payments to U.S. owners of foreign assets.
III. demand for U.S. Treasury bonds by U.S. residents.
IV. foreigners' purchases of U.S. assets.

Question

Figure 15-1 
-Refer to Figure 15-1. The demand curve of dollars represents 
I. U.S. purchases of imported goods and services.
II. payments to U.S. owners of foreign assets.
III. demand for U.S. Treasury bonds by U.S. residents.
IV. foreigners' purchases of U.S. assets.

Quizplus · Accepted Answer

The demand curve for dollars represents the demand for U.S. assets by foreigners and the payments to U.S. owners of foreign assets, but it does not represent U.S. purchases of imported goods and services or the demand for U.S. Treasury bonds by U.S. residents. Therefore, choices II and IV are correct, and choices I and III are incorrect. The best choice that includes only correct options is C.

Figure 15-1 -Refer to Figure 15-1. the Demand Curve of Dollars Represents