Which of the following would shift the demand for dollars in the market for foreign currency exchange to the right?
A)foreign citizens want to buy more U.S.goods and services at a given exchange rate
B)foreign citizens want to buy fewer U.S.goods and services at a given exchange rate
C)foreign citizens want to buy more U.S.bonds
D)foreign citizens want to by fewer U.S.bonds

Question

Quizplus · Accepted Answer

When foreign citizens want to buy more U.S. goods and services at a given exchange rate, they will need to convert their currency into US dollars, which increases the demand for US dollars in the foreign currency exchange market.

Which of the Following Would Shift the Demand for Dollars