An Increase in Capital Inflows in the United States Will

Multiple Choice

An increase in capital inflows in the United States will result in a(n) _____ foreign currency and a(n) _____ the U.S. dollars in the foreign exchange market.

A) increase in the demand for; increase in the supply of
B) increase in the supply of; increase in the demand for
C) shortage of foreign currency; surplus of
D) decrease in the supply of; decrease in the demand for