Which of the following increases the supply of U.S. dollars? A.The U.S. dollar is expected to...
Which of the following increases the supply of U.S. dollars?
A.The U.S. dollar is expected to appreciate in the future.
B.An increase in the demand for U.S. assets by foreigners.
C.The U.S. dollar is expected to depreciate in the future.
D.An increase in foreigners' demand for goods and services made in the United States.
Homework Answers
Increase of supply is dollar means that there is a hike in demand for dollars
In expectation we can't give security about the future, so supply will not depend on it
Depreciation of dollar in future will actually decrease the supply of it so this option is also not true
So overall if there is an increase in demand for good and services which means there will be more exporting from us and hence appreciation in the value of dollars
So the answer is an option D
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