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-(Figure: Change in the Demand for U.S. Dollars) Refer to Figure: Change in the Demand for U.S. Dollars. The change from D₁ to D₂ will occur, all other things being equal, if:

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Use the following to answer questions:

-(Figure: Change in the Demand for U.S. Dollars) Refer to Figure: Change in the Demand for U.S. Dollars. The change from D₁ to D₂ will occur, all other things being equal, if:

Quizplus · Accepted Answer

The increase in demand for U.S. dollars indicates that there is a greater desire to hold U.S. dollars relative to the foreign currency. This may occur if interest rates in the United States are higher than in the foreign country, making investments in the U.S. more attractive. Therefore, B is the correct choice.

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