The quantity of dollars demanded by foreign nations increases as
A) U.S. residents purchase more foreign goods.
B) foreigners purchase more U.S. goods.
C) more U.S. residents travel abroad.
D) U.S. exports fall.

Question

Quizplus · Accepted Answer

When foreigners purchase more U.S. goods, they need U.S. dollars to pay for those goods, which increases the demand for U.S. dollars by foreign nations.

The Quantity of Dollars Demanded by Foreign Nations Increases as