An increase in the U.S. demand for imports will __________the supply of dollars and lead the dollar to __________.
A) increase; depreciate
B) decrease; appreciate
C) increase; appreciate
D) decrease; depreciate

Question

Quizplus · Accepted Answer

An increase in U.S. demand for imports means more dollars are needed to buy foreign goods, increasing the supply of dollars in the foreign exchange market, which typically leads to a depreciation of the dollar.

An Increase in the U