As the expected profit from holding dollars ________, the quantity of ________.
A) increases; dollars demanded increases
B) increases; dollars demanded decreases
C) decrease; foreign currency demanded decreases
D) None of the above answers is correct.

Question

Quizplus · Accepted Answer

When the expected profit from holding dollars increases, it makes dollars more attractive to hold, leading to an increase in the quantity of dollars demanded.

As the Expected Profit from Holding Dollars ________, the Quantity