A __________ shift in the demand curve for a foreign currency causes the foreign currency to __________.
A) rightward; appreciate
B) leftward; appreciate
C) rightward; depreciate
D) None of the above.

Question

Quizplus · Accepted Answer

A rightward shift in the demand curve for a foreign currency indicates an increase in demand for that currency, which would cause it to appreciate. A leftward shift in the demand curve would indicate a decrease in demand, leading to depreciation. Therefore, option A is the correct answer.

A __________ Shift in the Demand Curve for a Foreign