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 buy more U.S.bonds
B)U.S.citizens buy more foreign bonds
C)foreign citizens buy more U.S.goods
D)U.S.citizens buy more foreign goods

Question

Quizplus · Accepted Answer

When U.S. citizens 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