If the exchange rate is constant and U.S. imports increase, then in the foreign exchange market the

Name: If the exchange rate is constant and U.S. imports increase, then in the foreign exchange market the
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When U.S. imports increase, the demand for foreign goods and services increases. To pay for these imports, U.S. residents must exchange U.S. dollars for foreign currencies. This increases the supply of U.S. dollars in the foreign exchange market.

If the Exchange Rate Is Constant and U