As the exchange rate ________, the quantity of dollars ________ in the foreign exchange market ________.
A) rises; supplied; increases
B) falls; supplied; increases
C) rises; demanded; increases
D) falls; demanded; decreases

Question

Quizplus · Accepted Answer

As the exchange rate rises, the value of the dollar increases, making it more attractive for holders to supply dollars in the foreign exchange market, thus increasing the quantity supplied.

As the Exchange Rate ________, the Quantity of Dollars ________

As the Exchange Rate , the Quantity of Dollars