Solved

Use the Following to Answer Questions

Question 52

Multiple Choice

Use the following to answer questions .
Exhibit: Foreign Exchange Market Use the following to answer questions . Exhibit: Foreign Exchange Market   -(Exhibit: Foreign Exchange Market)  The supply of dollars curve slopes upwards because A)  a higher exchange rate tends to make foreign goods and services more expensive for U.S. buyers, thereby raising the price of foreign currency in the foreign exchange market. B)  a higher exchange rate tends to make foreign goods and services cheaper to U.S. buyers, thereby generating a higher quantity of dollars in the foreign exchange market. C)  a lower exchange rate tends to decrease U.S. exports, thereby generating a lower quantity of dollars in the foreign exchange market. D)  a lower exchange rate tends to increase U.S. imports, thereby raising the price of foreign currency in the foreign exchange market.
-(Exhibit: Foreign Exchange Market) The supply of dollars curve slopes upwards because


A) a higher exchange rate tends to make foreign goods and services more expensive for U.S. buyers, thereby raising the price of foreign currency in the foreign exchange market.
B) a higher exchange rate tends to make foreign goods and services cheaper to U.S. buyers, thereby generating a higher quantity of dollars in the foreign exchange market.
C) a lower exchange rate tends to decrease U.S. exports, thereby generating a lower quantity of dollars in the foreign exchange market.
D) a lower exchange rate tends to increase U.S. imports, thereby raising the price of foreign currency in the foreign exchange market.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents