You see on the Internet that the U.S.exchange rate has fallen.This might have been caused by
A)a decrease in the demand for or a decrease in the supply of dollars in the market for foreign-currency exchange.
B)a decrease in the demand for or an increase in the supply of dollars in the market for foreign-currency exchange.
C)an increase in the demand for or a decrease in the supply of dollars in the market for foreign-currency exchange.
D)an increase in the demand for or a increase in the supply of dollars in the market for foreign-currency exchange.

Question

Quizplus · Accepted Answer

According to the law of supply and demand, a decrease in demand or an increase in supply will cause the price (exchange rate) to fall. Therefore, an answer option B, a decrease in demand for or an increase in supply of dollars in the market for foreign-currency exchange, is the best choice.

You See on the Internet That the U