As the dollar/Euro exchange rate decreases:
A) the supply of Euros increases.
B) the supply of Euros decreases.
C) the quantity supplied of Euros increases.
D) the quantity supplied of Euros decreases.
E) the quantity demanded of Euros will not change.

Question

Quizplus · Accepted Answer

As the dollar/Euro exchange rate decreases, Euros become more expensive in terms of dollars, leading to a decrease in the quantity supplied of Euros as suppliers are less willing to exchange Euros for fewer dollars.

As the Dollar/Euro Exchange Rate Decreases