Important factors that change the demand for dollars and hence 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
A) I and II
B) I and III
C) II
D) I, II, and III

Question

Quizplus · Accepted Answer

Factors that change the demand for dollars and hence shift the demand curve include interest rates around the world and the expected future exchange rate. The current exchange rate does not shift the demand curve; instead, it is a point on the curve.

Important Factors That Change the Demand for Dollars and Hence