On the foreign exchange market, an increase in a country's exchange rate
A) decreases the quantity demanded of its currency and leads to a movement up along the demand curve.
B) increases the quantity demanded of its currency and leads to a movement up along the demand curve.
C) decreases the demand for its currency and shifts the demand curve rightward.
D) decreases the demand for its currency and shifts the demand curve leftward.
E) increases the quantity demanded of its currency and leads to a movement down along the demand curve.
Correct Answer:
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