If U.S.consumers increase their demand for foreign products and foreign travel,the U.S.dollar would tend to depreciate as more dollars are supplied to foreign exchange markets.

Question

Quizplus · Accepted Answer

An increase in demand for foreign products and travel means that more U.S. dollars would need to be exchanged for foreign currency, leading to a higher supply of U.S. dollars in the foreign exchange markets. This increase in supply would cause the value of the U.S. dollar to depreciate relative to other currencies.

If USConsumers Increase Their Demand for Foreign Products and Foreign Travel,the