An expected appreciation of the dollar, everything else held constant, should cause:

Name: An expected appreciation of the dollar, everything else held constant, should cause:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When there is an expectation of appreciation of the dollar, people will want to buy more dollars in anticipation of its increased value. This increased desire to acquire dollars results in an increase in demand for the currency. Therefore, the correct choice is B, “The demand for dollars to increase”.

An Expected Appreciation of the Dollar, Everything Else Held Constant