Identify the Correct Statement About Foreign Exchange Markets

Identify the correct statement about foreign exchange markets.

A) The effect of an increase in the supply of dollars is the same as that of an increase in the supply of foreign currencies.
B) The effect of an increase in the supply of dollars is the same as that of a decrease in the supply of foreign currencies.
C) The effect of an increase in the supply of dollars is the same as that of an increase in the demand for dollars.
D) As the price of a foreign currency decreases relative to the U.S. dollar, foreign products become relatively more expensive to U.S. consumers.
E) As the price of a foreign currency increases relative to the U.S. dollar, U.S. products will become relatively more expensive to European buyers.