Figure 10-2
-Refer to Figure 10-2. The demand for dollars curve slopes downwards because

Question

Figure 10-2 
-Refer to Figure 10-2. The demand for dollars curve slopes downwards because

Quizplus · Accepted Answer

The demand for dollars curve slopes downwards because a higher exchange rate tends to make U.S. goods and services more expensive for foreigners, thereby generating a lower quantity of dollars in the foreign exchange market. This is because foreign buyers will demand fewer dollars to purchase the same amount of U.S. goods and services, resulting in a decrease in the quantity of dollars demanded.

Figure 10-2 -Refer to Figure 10-2. the Demand for Dollars Curve Slopes