Asked by Kristofer Miller on Jun 15, 2024
Verified
If for some reason U.S. residents increase their purchases of foreign assets, then all else constant which curve in the market for foreign-currency exchange shifts and which direction does it shift? What happens to the exchange rate?
Foreign-Currency Exchange
The process of exchanging one country's currency for another, often to facilitate international trade or travel.
- Analyze the influence of U.S. residents' purchases of foreign assets on exchange rates and market curves.
Verified Answer
BB
Benjamin BustosJun 20, 2024
Final Answer :
The supply of dollars shifts right causing the exchange rate to fall.
Learning Objectives
- Analyze the influence of U.S. residents' purchases of foreign assets on exchange rates and market curves.