As the Euro/dollar exchange rate increases:
A) the demand for dollars increases.
B) the demand for dollars decreases.
C) the quantity demanded of dollars increases.
D) the quantity demanded of dollars decreases.
E) the demand for Euros does not change.

Question

Quizplus · Accepted Answer

As the Euro/dollar exchange rate increases, it means the dollar is becoming more expensive relative to the Euro, leading to a decrease in the quantity demanded of dollars.

As the Euro/dollar Exchange Rate Increases