All else being equal, an increased demand for U.S. products in the European Union will create a
A) demand for euros.
B) supply of euros.
C) shortage of euros.
D) surplus of euros.

Question

Quizplus · Accepted Answer

When there is an increased demand for U.S. products in the European Union, Europeans need to buy more dollars to pay for these products, leading to a supply of euros in the currency exchange market as they exchange euros for dollars.

All Else Being Equal, an Increased Demand for U