In the foreign exchange market,an increase in the world demand for U.S.exports shifts

Question

Quizplus · Accepted Answer

When there is an increase in the world demand for U.S. exports, it means that foreign buyers will need more U.S. dollars to purchase these exports. This creates a higher demand for U.S. dollars, which shifts the demand curve for U.S. dollars rightward. As a result, the value of the U.S. dollar increases relative to other currencies.

In the Foreign Exchange Market,an Increase in the World Demand