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

Name: All else equal, an increase in the U.S. demand for foreign goods causes an appreciation of the dollar.
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Question

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An increase in U.S. demand for foreign goods leads to an increase in demand for foreign currencies to purchase those goods, which should cause a depreciation of the dollar, not an appreciation.

All Else Equal, an Increase in the U