A decrease in the demand for dollars on the foreign exchange market, all else equal, will result in:

A) appreciation of the U.S. dollar and depreciation of the foreign currency.
B) appreciation of the U.S. dollar and appreciation of the foreign currency.
C) depreciation of the U.S. dollar and depreciation of the foreign currency.
D) depreciation of the U.S. dollar and appreciation of the foreign currency.

Ans: D) depreciation of the U.S. dollar and appreciation of the foreign currency.

Economics

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The Federal reserve can increase the money supply by lowering the reserve requirement or raising the discount rate

Indicate whether the statement is true or false

Economics

Active policy making would include all of the following EXCEPT

A) interest rate changes by the Fed. B) tax increases. C) unemployment insurance benefits. D) increased government spending by the Congress.

Economics