In the foreign exchange market, a change in which of the following will result in a movement along the demand curve for dollars?

Question

Quizplus · Accepted Answer

A change in exchange rate will result in a movement along the demand curve for dollars, as the exchange rate is the price of one currency in terms of another currency. As the exchange rate changes, the quantity demanded of dollars changes as well. A change in interest rates or expected future exchange rates would shift the demand curve for dollars, rather than result in a movement along the curve.

In the Foreign Exchange Market, a Change in Which of the Following