Which of the following increases the demand for the U.S.dollar in the foreign exchange market?

Question

Quizplus · Accepted Answer

An increase in U.S. exports means that foreigners are demanding more U.S. goods and services, which requires them to purchase U.S. dollars to conduct those transactions. As a result, the increased demand for U.S. dollars in the foreign exchange market raises the currency's value. The other choices, such as an increase in the saving rate, inflation, or capital outflow, do not necessarily increase demand for the U.S. dollar.

Which of the Following Increases the Demand for the U