The U.S. dollar will depreciate in value if
A) the demand for the dollar increases.
B) the demand for the dollar decreases.
C) the supply of foreign exchange decreases.
D) U.S. citizens choose to buy fewer foreign goods.

Question

Quizplus · Accepted Answer

The U.S. dollar will depreciate in value if the demand for the dollar decreases, as this means less desire for holding or transacting in dollars relative to other currencies, leading to a decrease in its value.

The U.S. Dollar Will Depreciate in Value If