Which of the following is most likely to cause the demand for dollars to increase?
A)increases in the foreign price of U.S. goods relative to the foreign price of foreign goods
B)increases in U.S. income
C)increases in foreign income
D)decreases in U.S. income

Question

Quizplus · Accepted Answer

Increases in foreign income lead to higher demand for U.S. goods by foreigners, which in turn increases the demand for dollars as they need dollars to buy those goods.

Which of the Following Is Most Likely to Cause the Demand