An increased supply of U.S.dollars on the foreign exchange market,all else equal,will result in an appreciation of the U.S.dollar.

Question

Quizplus · Accepted Answer

An increased supply of U.S. dollars on the foreign exchange market will lead to a decrease in the value of the U.S. dollar due to the basic law of supply and demand. When the supply of a currency increases, its value decreases. Therefore, an appreciation of the U.S. dollar would result from a decrease in its supply or an increase in its demand.

An Increased Supply of U