The demand for US dollars on the foreign exchange market slopes __________ because Canadians spend
__________ on US goods when the Canadian dollar price of the US dollar is ________.
A) upward; less; higher
B) upward; more; higher
C) downward; less; lower
D) downward; more; lower

Question

Quizplus · Accepted Answer

The demand for US dollars slopes downward because as the Canadian dollar price of the US dollar decreases, US goods become cheaper for Canadians, leading them to spend more on US goods.

The Demand for US Dollars on the Foreign Exchange Market