Which of the following is most likely to lead to an increase in the demand for U.S.dollars in the foreign exchange market?
A)U.S.firms purchasing raw materials from Japan
B)U.S.speculators expecting the value of the German mark to rise
C)The Fed intervening in the foreign exchange market and devaluing the dollar
D)Speculative outflows of money from the United States to Britain because of higher interest rates in Britain
E)Japanese cars becoming more popular in the United States

Question

Quizplus · Accepted Answer

The Answer of Which of the following is most likely to lead to an increase in the demand for U.S.dollars in the foreign exchange market?
A)U.S.firms purchasing raw materials from Japan
B)U.S.speculators expecting the value of the German mark to rise
C)The Fed intervening in the foreign exchange market and devaluing the dollar
D)Speculative outflows of money from the United States to Britain because of higher interest rates in Britain
E)Japanese cars becoming more popular in the United States

Which of the Following Is Most Likely to Lead to an Increase