Which of the following would NOT induce the U.S.demand curve for foreign exchange to shift backward to the left?
A) worsening American tastes for goods produced overseas
B) decreasing interest rates in the U.S. compared to those overseas
C) a fall in the level of U.S. income
D) a depreciation in the U.S. dollar against foreign currencies

Question

Quizplus · Accepted Answer

A depreciation in the U.S. dollar against foreign currencies would actually increase the demand for U.S. goods by making them cheaper for foreign buyers, thus potentially shifting the U.S. demand curve for foreign exchange to the right, not to the left.

Which of the Following Would NOT Induce the U