Important factors that change the demand for dollars and shift the demand curve for dollars include of the following?
I. Interest rates around the world.
II. The current exchange rate.
III. The expected future exchange rate.

Question

Quizplus · Accepted Answer

Interest rates around the world and the expected future exchange rate are both factors that can affect the demand for dollars and shift the demand curve for dollars. The current exchange rate, while important in determining the relative value of the dollar compared to other currencies, does not necessarily affect the overall demand for dollars.

Important Factors That Change the Demand for Dollars and Shift