When foreign countries buy wheat grown in the United States,they are generating a

Question

Quizplus · Accepted Answer

When foreign countries buy wheat grown in the United States, they need to pay in U.S. dollars. This generates a demand for U.S. dollars. At the same time, they will supply their own currency to buy U.S. dollars, which creates a supply of foreign currency. Therefore, the correct answer is B, a demand for U.S. dollars and a supply of a foreign currency.

When Foreign Countries Buy Wheat Grown in the United States,they