The U.S. dollar will appreciate in value if
A) the demand curve for U.S. dollars shifts rightward.
B) the demand curve for U.S. dollars shifts leftward.
C) the supply curve of U.S. dollars shifts rightward.
D) Americans choose to buy more foreign goods.

Question

Quizplus · Accepted Answer

An increase in demand for U.S. dollars will lead to an appreciation in its value. This is because a higher demand for the currency indicates that more people want to hold it and as a result, are willing to pay a higher price for it.

The U.S. Dollar Will Appreciate in Value If