Other Things the Same, If the U

Multiple Choice

Other things the same, if the U.S. price level falls, then

A) the supply of dollars in the market for foreign-currency exchange increases, so the exchange rate rises.
B) the supply of dollars in the market for foreign-currency exchange increases, so the exchange rate falls.
C) the supply of dollars in the market for foreign-currency exchange decreases, so the exchange rate rises.
D) the supply of dollars in the market for foreign-currency exchange decreases, so the exchange rate falls.