When exports of American goods increase, this __________ the demand for U.S. dollars and at the same time __________ foreign currencies.

Question

Quizplus · Accepted Answer

When exports of American goods increase, foreign buyers need more U.S. dollars to pay for these goods, increasing the demand for U.S. dollars. Simultaneously, they supply more of their own currency to exchange for dollars, increasing the supply of foreign currencies.

When Exports of American Goods Increase, This __________ the Demand