In the foreign exchange market,a change in which of the following will result in a movement along the demand curve for Canadian dollars?
A)the U.S.interest rate
B)the Canadian interest rate
C)the exchange rate
D)the expected future exchange rate
E)both A and B

Question

Quizplus · Accepted Answer

A movement along the demand curve for a currency is caused by a change in the exchange rate itself, not by changes in interest rates or expectations.

In the Foreign Exchange Market,a Change in Which of the Following