If the U.S. government imposed trade restrictions on U.S. imports, this would ____ the U.S. demand for foreign currencies and would place ____ pressure on the values of foreign currencies (with respect to the dollar).
A)increase; upward
B)increase, downward
C)limit; upward
D)limit; downward

Question

If the U.S. government imposed trade restrictions on U.S. imports, this would ____ the U.S. demand for foreign currencies and would place ____ pressure on the values of foreign currencies (with respect to the dollar). ​
A)increase; upward
B)increase, downward
C)limit; upward
D)limit; downward

Quizplus · Accepted Answer

Trade restrictions on U.S. imports would limit the U.S. demand for foreign currencies because fewer imports mean less need to exchange dollars for foreign currencies. This would place downward pressure on the values of foreign currencies as the demand for them decreases.

If the US Government Imposed Trade Restrictions on U