A shift in the U.S.supply curve of dollars in the foreign exchange market could be caused by all of the following EXCEPT a change in
A) the current exchange rate of the dollar.
B) the expected future exchange rate of the dollar.
C) the rate of inflation in the United States.
D) productivity of the U.S. labor force.

Question

Quizplus · Accepted Answer

The U.S. supply curve of dollars in the foreign exchange market represents the amount of dollars supplied by U.S. residents and firms to the foreign exchange market at various exchange rates. A change in the current exchange rate of the dollar would result in a movement along the U.S. supply curve rather than a shift. Therefore, A is the correct answer, and B, C, and D could cause a shift in the U.S. supply curve of dollars.

A Shift in the U