Important factors that change the demand for dollars and shift the demand curve for dollars include which of the following?
I. Interest rates around the world.
II. The current exchange rate.
III. The expected future exchange rate.

Question

Quizplus · Accepted Answer

Interest rates around the world and the expected future exchange rate are both factors that can change the demand for dollars and shift the demand curve for dollars. The current exchange rate is a factor that reflects the current demand and supply of dollars, but it does not necessarily cause a shift in the demand curve. Therefore, choices I and III are the relevant factors and the correct answer is B.

Important Factors That Change the Demand for Dollars and Shift