When the equilibrium dollar price of a foreign currency decreases due to changes in demand for or supply of the foreign currency,the foreign currency

Question

Quizplus · Accepted Answer

When the equilibrium dollar price of a foreign currency decreases, it means that there is a decrease in demand for the foreign currency or an increase in its supply. This leads to a depreciation of the foreign currency, making it worth less in terms of the dollar. Therefore, option B is the correct answer.

When the Equilibrium Dollar Price of a Foreign Currency Decreases