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The Demand for Dollars in the Foreign Exchange Market

Question 8

Multiple Choice

The demand for dollars in the foreign exchange market


A) Is represented by a point in a diagram of foreign exchange supply and demand.
B) Depends in part on the foreign demand for U.S.goods.
C) Depends on U.S.demand for foreign goods and services.
D) Is the ratio of the dollars demanded to the amount of foreign currency supplieD.Whenever foreigners purchase goods or services from U.S.firms,or U.S.assets,they create a demand for the dollar.

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