The US demand for euros is always___________.
A)negatively sloped
B)positively sloped
C)perfectly elastic
D)perfectly inelastic

Question

Quizplus · Accepted Answer

The US demand for euros is negatively sloped because as the value of the euro increases (it becomes more expensive in terms of dollars), Americans will demand fewer euros, and as the euro decreases in value (becomes cheaper in terms of dollars), Americans will demand more euros. This inverse relationship between the price of euros and the quantity demanded is what creates a negative slope on the demand curve.

The US Demand for Euros Is Always___________