Which Statement Best Describes the Law of Demand as It

question 54

Multiple Choice

Which statement best describes the law of demand as it relates to currency markets?

• A) The law of demand only applies to goods and services,not currency.
• B) When the price of a Mexican peso in terms of a U.S.dollar decreases,U.S.consumers demand fewer Mexican pesos because Mexican goods become more expensive to American consumers.
• C) When the price of Japanese yen in terms of a U.S.dollar decreases,U.S.consumers demand more Japanese dollars because Japanese goods become more expensive to American consumers.
• D) When the price of a Canadian dollar in terms of a U.S.dollar increases,U.S.consumers demand fewer Canadian dollars because Canadian goods become more expensive to American consumers.
• E) When the price of an Australian dollar in terms of a U.S.dollar increases,U.S.consumers demand more Australian dollars because Australian goods become less expensive to American consumers.