A Decrease in the Supply of Dollars on the Foreign

Multiple Choice

A decrease in the supply of dollars on the foreign exchange market,all else equal,will result in:

A) appreciation of the U.S. dollar and depreciation of the foreign currency.
B) appreciation of the U.S. dollar and appreciation of the foreign currency.
C) depreciation of the U.S. dollar and depreciation of the foreign currency.
D) depreciation of the U.S. dollar and appreciation of the foreign currency.