If for Some Reason Americans Wished to Purchase More Foreign

question 12

Multiple Choice

If for some reason Americans wished to purchase more foreign assets, then other things the same

• A) both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency exchange would fall.
• B) both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency would rise.
• C) the real exchange rate would rise and the quantity of dollars exchanged in the market for foreign-currency would fall.
• D) the real exchange rate would fall and the quantity of dollars exchanged in the market for foreign-currency would rise.