An Increase in the U

Multiple Choice

An increase in the U.S. demand for foreign exchange will cause

A) an increase in the price of foreign exchange, which is a depreciation of the U.S. dollar, making foreign goods cheaper to U.S. residents.
B) an increase in the price of foreign exchange, which is a depreciation of the U.S. dollar, making foreign goods more expensive to U.S. residents.
C) a decrease in the price of the U.S. dollar, which is an appreciation of the U.S. dollar.
D) an increase in the price of foreign exchange, which is an appreciation of the U.S. dollar.
E) a decrease in the price of foreign exchange, which is an appreciation of the U.S. dollar.