Which of the following occurrences would NOT shift the demand curve for U.S. dollars in the foreign exchange market?

Question

Quizplus · Accepted Answer

An increase in the U.S. exchange rate would not shift the demand curve for U.S. dollars as the exchange rate is already incorporated into the demand curve. An increase in foreign interest rates (A), an increase in the expected future U.S. exchange rate (C), and an increase in U.S. interest rates (D) would shift the demand curve for U.S. dollars.

Which of the Following Occurrences Would NOT Shift the Demand