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

Question

Quizplus · Accepted Answer

An increase in foreign demand for U.S. exports will increase the demand for dollars as foreign buyers will need to exchange their own currency for dollars to purchase U.S. products. This increased demand for dollars will lead to an appreciation of the dollar.

An Increase in Foreign Demand for U