Other things the same,if participants in foreign exchange markets come to expect an increase in the value of the U.S.dollar ________.

Question

Quizplus · Accepted Answer

Expectations of an increase in the value of the U.S dollar should lead to an increase in demand for the currency, which should drive up its value in the foreign exchange market. This would result in a higher exchange rate for the dollar, which means that one unit of the dollar would be worth more relative to other currencies. Therefore, the actual value of the U.S. dollar will rise.

Other Things the Same,if Participants in Foreign Exchange Markets Come