Suppose the United States experiences a rise in the U.S. dollar price of foreign exchange.
A) This means that the U.S. exchange rate has risen and the U.S. dollar buys more foreign currency.
B) This means that the U.S. exchange rate has risen and the U.S. dollar buys less foreign currency.
C) This means that the U.S. exchange rate has fallen and the U.S. dollar buys more foreign currency.
D) This means that the U.S. exchange rate has fallen and the U.S. dollar buys less foreign currency.
Answer: D) This means that the U.S. exchange rate has fallen and the U.S. dollar buys less foreign currency.
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