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Author Question: What are the influences on the demand for U.S. dollars in the foreign exchange market? What will ... (Read 125 times)

jessicacav

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on: Jun 29, 2018
What are the influences on the demand for U.S. dollars in the foreign exchange market?
 
  What will be an ideal response?

Question 2

What is the difference between an increase in supply and an increase in quantity supplied?
 
  A) There is no difference between the two terms; they both refer to a movement along a given supply curve.
  B) An increase in supply means the supply curve has shifted to the right while an increase in quantity supplied means at any given price supply has increased.
  C) There is no difference between the two terms; they both refer to a shift of the supply curve.
  D) An increase in supply means the supply curve has shifted to the right while an increase in quantity supplied refers to a movement along a given supply curve in response to an increase in price.


covalentbond

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The demand for U.S. dollars depends on four main factors: the exchange rate, the world demand for U.S. exports, the interest rate in the United State and other countries, and the expected future exchange rate.

Answer to Question 2

D


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