When a good is imported into the United States, a ________ is created.
A) supply of foreign currency with no effect on the market for the dollar
B) demand for dollars with no effect on markets for foreign currencies
C) supply of foreign currencies and a demand for dollars
D) demand for foreign currencies and a supply of dollars

Question

Quizplus · Accepted Answer

When a good is imported into the United States, it creates a demand for foreign currencies (to pay for the imported goods) and a supply of dollars (as dollars are exchanged into foreign currencies to facilitate the transaction).

When a Good Is Imported into the United States, a ________