If the United States imports more than it exports, then this means that
A)the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus.
B)the demand for dollars is likely to exceed the supply in the foreign exchange market, ceteris paribus.
C)the U.S. dollar would be under pressure to appreciate against other currencies.
D)both b and c are correct

Question

Quizplus · Accepted Answer

When the U.S. imports more than it exports, it means more dollars are being supplied to buy foreign goods, leading to an excess supply of dollars in the foreign exchange market.

If the United States Imports More Than It Exports, Then