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

Question

Quizplus · Accepted Answer

As the Euro/dollar exchange rate decreases, the dollar becomes weaker, leading to a decrease in the quantity supplied of dollars as holders are less willing to exchange them at a lower rate.

As the Euro/dollar Exchange Rate Decreases