Grain shortages in countries that buy large amounts of grain from the United States would increase the demand for American grain and
A) reduce the demand for dollars.
B) increase the demand for dollars.
C) reduce the supply of dollars.
D) increase the supply of dollars.

Question

Quizplus · Accepted Answer

If there is an increase in demand for American grain due to grain shortages in countries that buy large amounts of grain from the United States, this will increase the demand for dollars. This is because these countries will need to pay for the increased amount of American grain they are importing, which will require them to exchange their currency for dollars in order to do so.

Grain Shortages in Countries That Buy Large Amounts of Grain