Question

U.S. demand for Japanese products creates a​ ________ U.S. dollars and a​ ________ Japanese yen in the foreign exchange market. A. demand​ for; demand for B. supply​ of; supply of C. supply​ of; demand for D. demand​ for; supply of

Answer 1

Answer:

The correct answer is option C.

Explanation:

US demand for Japanese products will create a supply of US dollars and demand for Japanese yen in the foreign exchange market.

This is because when the US consumers purchase Japanese products they need to pay in Japanese yen, so they will exchange US dollars for Japanese yen. Consequently, this will lead to an increase in the supply of US dollars and a demand for Japanese yen.