If there is an increase in the expected future U.S. exchange rate, there is
A) a leftward shift of the demand curve for dollars.
B) a downward movement along the demand curve for dollars.
C) an upward movement along the demand curve for dollars.
D) a rightward shift of the demand curve for dollars.

Question

Quizplus · Accepted Answer

An increase in the expected future U.S. exchange rate makes holding dollars more attractive, leading to a rightward shift in the demand curve for dollars as investors and traders anticipate higher returns.

If There Is an Increase in the Expected Future U