Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions .
Exhibit: Foreign Exchange Market
-(Exhibit: Foreign Exchange Market) The demand for dollars curve slopes downwards because

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