Any event that increases the U.S. demand for euros should result in a(n) ____ in the value of the euro with respect to ____, other things being equal.
A) increase; U.S. dollar
B) increase; nondollar currencies
C) decrease; nondollar currencies
D) decrease; U.S. dollar

Question

Quizplus · Accepted Answer

An increase in U.S. demand for euros means a higher demand for euros relative to dollars. This increased demand should result in higher prices (value) for euros relative to dollars, leading to an increase in the euro's value with respect to the U.S. dollar.

Any Event That Increases the U