Which of the following will not shift the demand for the euro to the right?
A)an increase in interest rates in the European Union
B)an increase in incomes in countries that buy goods from the European Union
C)expectations among speculators that the price of the euro will rise in the future
D)a decrease in the demand for European goods

Question

Quizplus · Accepted Answer

A decrease in the demand for European goods will decrease the demand for euros as well, as buyers of European goods are likely to exchange their currency for euros in order to make purchases. An increase in interest rates, an increase in incomes in countries that buy goods from the European Union, and expectations among speculators that the price of the euro will rise in the future are all factors that can increase the demand for euros and shift the demand curve to the right.

Which of the Following Will Not Shift the Demand for the Euro