The quantity of U.S. dollars demanded in the foreign exchange market increases if ______. A. The value

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The quantity of U.S. dollars demanded in the foreign exchange market increases if ______. 

A. The value of U.S. imports increases 

B. Traders expect the future exchange rate to rise 

C. The U.S. interest rate rises relative to those in other countries 

D. The U.S. dollar depreciates against other currencies

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
Foreign Exchange Market
The foreign exchange market (also known as forex, FX or the currency market) is an over-the-counter (OTC) global marketplace that determines the exchange rate for currencies around the world. Participants are able to buy, sell, exchange and...
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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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