The supply curve of U.S.dollars in the foreign exchange market is:
A)downward-sloping because it is negatively related to U.S.exports.
B)downward-sloping because it is negatively related to U.S.imports.
C)upward-sloping because it is positively related to U.S.exports.
D)upward-sloping because it is positively related to U.S.imports.
E)horizontal because it is unrelated to foreign demand for U.S.goods and services

Question

Quizplus · Accepted Answer

The supply curve of U.S. dollars is upward-sloping because as U.S. imports increase, more dollars are supplied to the foreign exchange market to pay for these imports.

The Supply Curve of U