The U.S. dollar will depreciate in value if
A) the demand curve for U.S. dollars shifts rightward.
B) the demand curve for U.S. dollars shifts leftward.
C) the supply curve of U.S. dollars shifts rightward.
D) Both answers B and C are correct.

Question

Quizplus · Accepted Answer

The U.S. dollar will depreciate in value if there is either a decrease in demand for U.S. dollars (demand curve shifts leftward) or an increase in the supply of U.S. dollars (supply curve shifts rightward). Both scenarios lead to a lower value of the dollar.

The U.S. Dollar Will Depreciate in Value If