Use the following to answer questions .
Exhibit: Exchange Rates
-(Exhibit: Exchange Rates) An increase in purchases of U.S. goods and services by foreigners
Would shift the

Question

Use the following to answer questions .
Exhibit: Exchange Rates 
-(Exhibit: Exchange Rates) An increase in purchases of U.S. goods and services by foreigners
Would shift the

Quizplus · Accepted Answer

An increase in purchases of U.S. goods and services by foreigners would increase the demand for dollars as foreigners would need to purchase dollars in order to buy U.S. goods and services. Therefore, the demand for dollars curve would shift to the right.

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