Which of the following changes would cause a movement along the U.S.demand curve for a foreign currency?
A) An increase in U.S.real GDP
B) A fall in U.S.real GDP
C) A rise in the U.S.interest rate
D) A change in the exchange rate
E) An expectation that the exchange rate is going to fall.

Question

Quizplus · Accepted Answer

A change in the exchange rate itself causes a movement along the demand curve for a foreign currency, as it directly affects the quantity demanded.

Which of the Following Changes Would Cause a Movement Along