In the Foreign Exchange Market, the Supply Curve for Dollars

question 88

Multiple Choice

In the foreign exchange market, the supply curve for dollars slopes upwards because

• A)supply curves always slope upwards.
• B)as the exchange rate rises, imports become cheaper, and more dollars are supplied to pay for the increase in the quantity of imports.
• C)as the exchange rate rises, imports become more expensive, and more dollars are supplied to pay for the imports.
• D)as the exchange rate rises, more dollars are supplied since the profit from selling dollars falls.

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