Which of the following factors would most likely lead to an increase in the demand for dollars in international financial markets?
A)U.S. prices increase relative to foreign prices
B)foreign incomes increase relative to domestic incomes
C)foreign interest rates rise relative to U.S. interest rates
D)U.S. incomes rise relative to domestic incomes

Question

Quizplus · Accepted Answer

When foreign incomes increase relative to domestic incomes, people in those countries have more money to spend, and they are likely to buy more U.S. goods or invest in the U.S., which increases the demand for dollars.

Which of the Following Factors Would Most Likely Lead to an Increase