The quantity of U.S. dollars supplied in the foreign exchange market depends on

Question

The quantity of U.S. dollars supplied in the foreign exchange market depends on many factors, the main ones being. the exchange rate, U.S. demand for imports, interest rates in the United States and other countries, and the expected future exchange rate the exchange rate, U.S. demand for imports, the previous path of the exchange rate, and the expected future exchange rate the price level in the United States, U.S. demand for imports, interest rates in the United States and other countries, and the expected future exchange rate the exchange rate, world demand for U.S. exports, interest rates in the United States and other countries, and the previous path of the exchange rate

Explanation / Answer

Option (A) -The quantity of U.S. dollars supplied in the foreign exchange market is the amount that traders plan to sell during a given time period at a given exchange rate.
This quantity depends on many factors but the main ones are
1. The exchange rate
2. U.S. demand for imports
3. Interest rates in the United States and other countries
4. The expected future exchange rate

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