At a given real exchange rate,which of the following,by itself,would increase the supply of dollars in the market for foreign-currency exchange?
A)foreign citizens want to buy more U.S.bonds
B)U.S.citizens want to buy more foreign bonds
C)foreign citizens want to buy more U.S.goods
D)U.S.citizens want to buy more foreign goods

Question

Quizplus · Accepted Answer

When U.S. citizens want to buy more foreign bonds, they need to exchange dollars for foreign currency, increasing the supply of dollars in the foreign exchange market.

At a Given Real Exchange Rate,which of the Following,by Itself,would