The Supply Curve of Dollars Decreases (Shifts to the Left)

question 22

Multiple Choice

The supply curve of dollars decreases (shifts to the left) in the foreign exchange market.This could be the result of

• A) the current exchange rate of the dollar rising (appreciating).
• B) the current exchange rate of the dollar falling (depreciating).
• C) an increase in the U.S. inflation rate relative to the inflation rate in other countries.
• D) a decrease in the U.S. inflation rate relative to the inflation rate in other countries.

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