If there's a huge increase in the number of Americans travelling to Europe (say, for the Olympics), then the effect on the foreign exchange market is that the:

Question

Quizplus · Accepted Answer

An increase in the number of Americans travelling to Europe would lead to an increase in the demand for euros as they need to exchange their dollars for euros to pay for goods and services in Europe. This increase in demand for euros will likely increase the exchange rate of euros to dollars.

If There's a Huge Increase in the Number of Americans