The supply curve of dollars shifts rightward if
A)the Canadian exchange rate rises.
B)the price of Canadian goods and services decreases.
C)Canadian interest rates rise.
D)foreign interest rates rise.
E)none of the above

Question

Quizplus · Accepted Answer

When foreign interest rates rise, it makes it more attractive for investors to hold foreign currency, leading to an increase in the supply of dollars.

The Supply Curve of Dollars Shifts Rightward If