Currency Traders Expect the Dollar to Appreciate

Multiple Choice

Currency traders expect the dollar to appreciate.What impact will this have on equilibrium in the foreign exchange market?

A) The dollar will appreciate, and the equilibrium quantity of dollars will decrease.
B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease.
C) The dollar will appreciate, and the equilibrium quantity of dollars will increase.
D) The dollar will appreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.
E) The dollar will depreciate, and the change in the equilibrium quantity of dollars exchange cannot be determined.