Question

the demand for dollars slopes downward becuase as the dollars appreciates, ______, which leads to fewer...

the demand for dollars slopes downward becuase as the dollars appreciates, ______, which leads to fewer dollars beinf demanded.

Homework Answers

Answer #1

The demand curve of dollar is downward sloping, as the value of dollar increase, the goods and services in US become expensive relative to foreign goods and services. So demand for US dollars decrease with the appreciation of dollar.

Hence it can be said that, the demand for dollar slopes downward because as the dollar appreciates, US goods and services becomes expensive relative to the foreign goods and services, which leads to fewer dollar be in demanded.

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