In Foreign Exchange Markets, the Demand for Dollars Is Determined

question 128

Multiple Choice

In foreign exchange markets, the demand for dollars is determined:

• A)​solely by the level of U.S.merchandise exports.
• B)​solely by the level of U.S.merchandise imports.
• C)​by the level of U.S.imports and the demand for foreign assets by U.S.citizens and the U.S.government.
• D)​by the level of U.S.exports and the demand for U.S.assets by foreigners.