Currency traders expect the value of the dollar to fall. What effect will this have on the demand for dollars and the supply of dollars in the foreign exchange market?
A) Demand for dollars will decrease, and supply of dollars will decrease.
B) Demand for dollars will increase, and supply of dollars will decrease.
C) Demand for dollars will increase, and supply of dollars will increase.
D) Demand for dollars will decrease, and supply of dollars will increase.
D
You might also like to view...
Diseconomies of scale often arise because higher production levels allow specialization among workers
a. True b. False Indicate whether the statement is true or false
Suppose that Honduras opens its markets to international trade. As a result of this, the domestic price of coffee decreases. We can conclude that
a. Honduras has a comparative advantage in the production of coffee. b. Honduras has begun to import coffee into the country. c. the price of coffee in Honduras prior to the opening of trade was lower than the world price. d. Honduras should specialize in the production of coffee.