Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions .
Exhibit: Foreign Exchange Market
-(Exhibit: Foreign Exchange Market) The supply of dollars curve slopes upwards because

A) a higher exchange rate tends to make foreign goods and services more expensive for U.S. buyers, thereby raising the price of foreign currency in the foreign exchange market.
B) a higher exchange rate tends to make foreign goods and services cheaper to U.S. buyers, thereby generating a higher quantity of dollars in the foreign exchange market.
C) a lower exchange rate tends to decrease U.S. exports, thereby generating a lower quantity of dollars in the foreign exchange market.
D) a lower exchange rate tends to increase U.S. imports, thereby raising the price of foreign currency in the foreign exchange market.