Use the following to answer questions .
Exhibit: Foreign Exchange Market 
-(Exhibit: Foreign Exchange Market) The demand for dollars curve slopes downwards because
A) a higher exchange rate tends to make U.S. goods and services more expensive for foreigners, thereby generating a lower quantity of dollars in the foreign exchange market.
B) a higher exchange rate tends to make U.S. goods and services cheaper for foreigners, thereby generating a lower quantity of dollars in the foreign exchange market.
C) a lower exchange rate tends to decrease U.S. exports, which raises the price of foreign currency 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:
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Q40: Currency rates of exchange are determined by
A)
Q41: An investor who felt that the U.S.
Q42: Use the following to answer questions .
Exhibit:
Q43: An increase in the supply of bonds
Q44: If the demand for U. S. dollars
Q46: Use the following to answer questions .
Exhibit:
Q47: An increase in the demand for bonds
Q48: Holding everything else unchanged, higher interest rates
Q49: A higher U.S. exchange rate means that
A)
Q50: Suppose the U.S. dollar price of the
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