What are the influences on the supply of U.S. dollars in the ...

[MGLQZ]

What are the influences on the supply of U.S. dollars in the foreign exchange market?
 
  What will be an ideal response?

Question 2

A recession begins with a(n) ________ in spending by firms on capital goods and a(n) ________ in spending on durable goods by households.
 
  A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease

[upturnedfurball]

Answer to Question 1

The supply of U.S. dollars depends on four main factors: the exchange rate, the U.S. demand for imports, the interest rate in the United States and other countries, and the expected future exchange rate.

Answer to Question 2

C