Asked by Brianna Weidaman on Apr 28, 2024
Verified
The demand for dollars is downward sloping because when dollar appreciates,
A) Foreigners demand more US goods and services
B) Foreigners demand fewer US goods and services
C) Foreigners demand more dollars
D) Foreigners do not change their demand for US goods and services
Dollar Appreciates
A situation where the value of the U.S. dollar increases compared to other currencies, affecting international trade and economic dynamics.
- Recognize the factors influencing the demand for a country's currency and its international purchasing power.
Verified Answer
KB
Kelechi BenedictaMay 03, 2024
Final Answer :
B
Explanation :
When the dollar appreciates, it becomes more expensive for foreigners to buy US goods and services. As a result, they will demand fewer US goods and services, leading to a decrease in demand for dollars. Hence, the demand for dollars is downward sloping.
Learning Objectives
- Recognize the factors influencing the demand for a country's currency and its international purchasing power.