In the forex,the demand for dollars will decrease if:
A)foreigners wish to buy U.S.goods.
B)foreigners wish to buy U.S.financial assets.
C)interest rates are lower in the U.S.relative to interest rates abroad.
D)All of these things will decrease the demand for dollars.

Question

Quizplus · Accepted Answer

If interest rates are lower in the U.S. relative to interest rates abroad, foreign investors may seek higher returns elsewhere, reducing their demand for dollars to invest in U.S. assets.

In the Forex,the Demand for Dollars Will Decrease If