As the dollar exchange rate increases,the quantity of dollars supplied in the foreign exchange market _________ and the quantity of dollars demanded in the foreign exchange market _________.

Question

Quizplus · Accepted Answer

As the dollar exchange rate increases, the quantity of dollars supplied increases because holders of dollars are more willing to exchange them for other currencies at a higher rate. Conversely, the quantity of dollars demanded decreases because foreign buyers find it more expensive to purchase dollars.

As the Dollar Exchange Rate Increases,the Quantity of Dollars Supplied