A decrease in the U.S. inflation rate relative to inflation rates in other countries would shift the:

Question

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When the U.S. inflation rate decreases relative to other countries, U.S. goods become relatively cheaper. This makes U.S. goods more attractive to both U.S. residents and foreigners, leading to an increase in demand for U.S. goods by foreigners and a decrease in demand for foreign goods by U.S. residents. Consequently, the demand for foreign currency by U.S. residents decreases because they need less foreign currency to buy foreign goods, shifting the U.S. demand curve for foreign currency to the left.

A Decrease in the U