The recent discovery of a significant amount of shale oil in the U.S. that can be exported will shift the:
A) supply of U.S. currency to the right and lead to a currency depreciation.
B) supply of U.S. currency to the right and lead to a currency appreciation.
C) demand for U.S. currency to the left and lead to a currency depreciation.
D) demand for U.S. currency to the right and lead to a currency appreciation.

Question

Quizplus · Accepted Answer

The discovery of shale oil increases U.S. exports, raising demand for U.S. currency as foreign buyers need dollars to purchase the oil, leading to currency appreciation.

The Recent Discovery of a Significant Amount of Shale Oil