Which of the following could increase the demand for dollars in the foreign exchange market?
A) a higher inflation rate in foreign countries
B) higher interest rates in foreign countries
C) higher prices in the United States
D) a depreciation of the dollar
E) an appreciation of other currencies

Question

Quizplus · Accepted Answer

A higher inflation rate in foreign countries can make U.S. goods relatively cheaper, increasing demand for dollars to purchase these goods.

Which of the Following Could Increase the Demand for Dollars