How Does a Decrease in the Federal Budget Deficit Affect

Multiple Choice

How does a decrease in the federal budget deficit affect the demand for dollars and the supply of dollars on the foreign exchange market?

A) The demand for dollars falls,and the supply of dollars falls.
B) The demand for dollars rises,and the supply of dollars rises.
C) The demand for dollars rises,and the supply of dollars falls.
D) The demand for dollars falls,and the supply of dollars rises.