Currency Traders Expect the Dollar to Appreciate

question 277

Multiple Choice

Currency traders expect the dollar to appreciate.What impact will this have on equilibrium in the foreign exchange market?

• A)The dollar will appreciate,and the equilibrium quantity of dollars will decrease.
• B)The dollar will depreciate,and the equilibrium quantity of dollars exchanged will decrease.
• C)The dollar will appreciate,and the equilibrium quantity of dollars will increase.
• D)The dollar will appreciate,and the change in the equilibrium quantity of dollars exchanged cannot be determined.

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