If Americans are importing more goods from abroad than they are able to sell to their overseas customers, there will be an excess supply of U.S. dollars in foreign hands.

Question

Quizplus · Accepted Answer

When Americans import more goods than they export, they need to exchange more U.S. dollars for foreign currencies to pay for these imports. This leads to an excess supply of U.S. dollars in foreign exchange markets.

If Americans Are Importing More Goods from Abroad Than They