A decrease in the U.S.demand for automobile imports will cause the supply curve of dollars to ______ and result in a(n) ___________.
A) increase; appreciation of the dollar
B) increase; depreciation of the dollar
C) decrease; appreciation of the dollar
D) decrease; depreciation of the dollar

Question

Quizplus · Accepted Answer

A decrease in demand for imports means fewer dollars are needed to exchange for foreign currency, reducing the supply of dollars in the foreign exchange market, leading to an appreciation of the dollar.

A Decrease in the U