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The Supply of Dollars in the Foreign Exchange Market Is

Question 85

Multiple Choice

The supply of dollars in the foreign exchange market is likely to be upward sloping because as the price of a dollar falls (the dollar depreciates) :

A) Americans demand fewer foreign goods because these goods have become more expensive to American consumers.
B) foreigners demand more American goods because these goods have become less expensive to foreign consumers.
C) foreigners demand more foreign goods because these goods have become more expensive to foreign consumers.
D) Americans demand more foreign goods because these goods have become less expensive to American consumers.

Correct Answer: