How Does a Decrease in the Federal Budget Deficit Affect

question 67

Multiple Choice

How does a decrease in the federal budget deficit affect the demand for dollars and the supply of dollars on the foreign exchange market?

• A)The demand for dollars falls,and the supply of dollars falls.
• B)The demand for dollars rises,and the supply of dollars rises.
• C)The demand for dollars rises,and the supply of dollars falls.
• D)The demand for dollars falls,and the supply of dollars rises.

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