The demand curve for U.S. dollars slopes downward because as the dollar ________ U.S. goods become ________ expensive to foreign residents, so they purchase fewer U.S. goods, and the quantity of dollars demanded decreases.
A) appreciates; more
B) appreciates; less
C) depreciates; more
D) depreciates; less

Question

Quizplus · Accepted Answer

When the dollar appreciates, U.S. goods become more expensive to foreign residents, leading to a decrease in the quantity of dollars demanded as they purchase fewer U.S. goods.

The Demand Curve for U