The larger the value of U.S. imports, the greater the quantity of causing the quantity supplied of _________dollars to _________.

Question

Quizplus · Accepted Answer

When the value of U.S. imports increases, there is a greater demand for foreign currencies to pay for those imports. Thus, the quantity demanded of foreign currencies increases and the quantity supplied of those foreign currencies increases as well, leading to an increase in their exchange rate value against the U.S. dollar.

The Larger the Value of U