Question: Which of the following will decrease the supply of U.S. dollars in the foreign exchange market? a. U.S. residents increase their travel abroad. b. U.S.

Which of the following will decrease the supply of U.S. dollars in the foreign exchange market?

a. U.S. residents increase their travel abroad.

b. U.S. consumers demand fewer imports.

c. Foreigners increase their demand for U.S. goods.

d. Foreigners increase their travel to the United States.

e. Foreign investors see increased investment opportunities in the United States.

Use a correctly labeled graph of the foreign exchange market between the U.S. and Europe to illustrate what would happen to the value of the U.S. dollar if there were an increase in the U.S. demand for imports from Europe.

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