An increase in capital inflows in the United States will result in a(n) ________ foreign currency and a(n) ________ U.S. dollars in the foreign exchange market.

A. shortage of foreign currency; surplus of
B. increase in the demand for; increase in the supply of
C. decrease in the supply of; decrease in the demand for
D. increase in the supply of; increase in the demand for

Answer: D

Economics

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