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In the Foreign Exchange Market, an Increase in the Exchange

Question 124

Multiple Choice

In the foreign exchange market, an increase in the exchange rate leads to

A) an increase the quantity of dollars supplied and a movement along the supply curve of dollars.
B) an increase in the quantity of dollars demanded and a movement along the demand curve for dollars.
C) an increase the quantity of dollars supplied and no movement along the supply curve of dollars.
D) an increase in the quantity of dollars demanded and no movement along the demand curve for dollars.
E) a decrease the quantity of dollars supplied and a movement along the supply curve of dollars.

Correct Answer: