In the foreign exchange market, an increase in the exchange rate leads to
A) an increase in the quantity of dollars demanded and no movement along the demand curve for dollars.
B) an increase the quantity of dollars supplied and a movement along the supply curve of dollars.
C) an increase the quantity of dollars supplied and no movement along the supply curve of dollars.
D) a decrease the quantity of dollars supplied and a movement along the supply curve of dollars.
E) an increase in the quantity of dollars demanded and a movement along the demand curve for dollars.
C
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Which of the following would cause an increase in the supply of cheese?
A) a decrease in the price of wine (assuming that cheese and wine are complements) B) an increase in the price of cheese C) an increase the price of a product that producers sell instead of cheese D) an increase in the number of firms that produce cheese