When people expect that the future exchange rate will be lower,they ________ the supply of dollars and the current exchange rate ________.

Name: When people expect that the future exchange rate will be lower,they ________ the supply of dollars and the current exchange rate ________.
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Question

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When people expect the future exchange rate to be lower, they are likely to increase the supply of dollars now to exchange them for foreign currency before the rate drops, leading to a fall in the current exchange rate.

When People Expect That the Future Exchange Rate Will Be