All of the following would add to the demand for U.S. dollars except
A) long-term capital inﬂows.
B) foreign travel by United States citizens.
C) exports of commodities from the United States.
D) travel by foreigners on United States airlines.

Question

Quizplus · Accepted Answer

Foreign travel by United States citizens would not add to the demand for U.S. dollars because it involves U.S. citizens spending their dollars in foreign countries for goods and services, which would reduce the supply of dollars in circulation. The other choices, long-term capital inflows, exports of commodities from the United States, and travel by foreigners on United States airlines, would all add to the demand for U.S. dollars.

All of the Following Would Add to the Demand for U.S