Which of the following would not induce the U.S.demand curve for foreign exchange to shift backward to the left?
A) Worsening American tastes for goods produced overseas
B) Increasing interest rates in the U.S. compared to those overseas
C) A fall in the level of U.S. income
D) A depreciation in the U.S. dollar against foreign currencies

Question

Quizplus · Accepted Answer

A depreciation in the U.S. dollar against foreign currencies would make foreign goods more expensive, potentially reducing demand for foreign exchange, but it does not directly cause the demand curve to shift left. Instead, it affects the quantity demanded along the curve.

Which of the Following Would Not Induce the U