America's demand for foreign currency increases due to all the following activities except -

Question

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When US restricts tire import from China, there will be less demand for the Chinese currency Yuan, and hence, there will be no need for Americans to exchange US dollars for Yuan. Hence, there will be no increase in demand for foreign currency due to this activity. On the other hand, A, B, and C all involve US citizens or firms engaging in transactions with foreign entities, which will require the exchange of US dollars for foreign currency, thereby increasing the demand for foreign currency.

America's Demand for Foreign Currency Increases Due to All the Following