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 sell dollars now, increasing the supply of dollars, which causes the current exchange rate to fall.

When People Expect That the Future Exchange Rate Will Be