Which one of the following shifts the demand curve for dollars rightward?
A)A decrease in the demand for Canadian goods by foreigners
B)U.S.interest rates rise.
C)An increase in the demand for foreign goods by Canadians
D)The dollar is expected to depreciate.
E)The dollar is expected to appreciate.

Question

Quizplus · Accepted Answer

If the dollar is expected to appreciate (increase in value), then foreigners will want to buy more U.S. goods and services, which will increase the demand for dollars. This will shift the demand curve for dollars rightward.

Which One of the Following Shifts the Demand Curve for Dollars