Fewer Italian companies start to invest in the United States. This will lead to a(n)

Question

Quizplus · Accepted Answer

If fewer Italian companies invest in the United States, there will be a decrease in the demand for dollars as Italian companies will require fewer dollars to conduct business in the US. This may also lead to a decrease in the supply of euro as Italian companies may hold onto their euros instead of exchanging them for dollars to invest in the US. Therefore, we can conclude that there will be a decrease in the demand for dollars and a decrease in the supply of euro.

Fewer Italian Companies Start to Invest in the United States