All else equal, an increase in the demand for the U.S. dollar results in an appreciation of the dollar.

Name: All else equal, an increase in the demand for the U.S. dollar results in an appreciation of the dollar.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in demand for the U.S. dollar means that there are more people who want to buy dollars, which creates a higher demand and a tighter supply. This tends to push up the exchange rate of the dollar relative to other currencies, resulting in an appreciation of the dollar.

All Else Equal, an Increase in the Demand for the U.S