In the Market for Foreign-Currency Exchange in the Open-Economy Macroeconomic

Multiple Choice

In the market for foreign-currency exchange in the open-economy macroeconomic model,a higher U.S.real exchange rate makes

A) U.S.goods more expensive relative to foreign goods and reduces the quantity of dollars supplied.
B) U.S.goods more expensive relative to foreign goods and reduces the quantity of dollars demanded.
C) foreign goods more expensive relative to U.S.goods and reduces the quantity of dollars supplied.
D) foreign goods more expensive relative to U.S.goods and reduces the quantity of dollars demanded.