An increase in the demand for a country's exports will cause the demand for its currency to:

Question

Quizplus · Accepted Answer

When there is an increase in demand for a country's exports, there will be an increase in demand for the country's currency. This is because foreign buyers will need to convert their currency into the country's currency in order to make the purchase. As a result, the demand for the country's currency will increase, leading to an appreciation in its value.

An Increase in the Demand for a Country's Exports Will