The demand for foreign exchange can shift in response to changes in a country's level of income.

Name: The demand for foreign exchange can shift in response to changes in a country's level of income.
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When a country's level of income increases, its demand for imported goods and services often increases as well, leading to a higher demand for foreign currencies to pay for these imports. Conversely, if a country's income level decreases, the demand for imports and thus foreign exchange may decrease.

The Demand for Foreign Exchange Can Shift in Response to Changes