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In the Foreign Exchange Market, the

Question 135

Multiple Choice

In the foreign exchange market, the

A) quantity of dollars supplied increases as the exchange rate increases and the supply of dollars does not change.
B) quantity of dollars supplied increases as the exchange rate decreases and the supply of dollars does not change.
C) supply of dollars increases as the exchange rate increases and the quantity of dollars supplied does not change.
D) supply of dollars decreases as the exchange rate increases and the quantity of dollars supplied does not change.
E) both the quantity of dollars supplied and the supply of dollars increases as the exchange rate increases.

Correct Answer: