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Eddi Din [679]
3 years ago
5

The expected future exchange rate​ ______ the demand for U.S. dollars. An increase in the U.S. demand for imports​ _______ the d

emand for U.S. dollars.
Social Studies
1 answer:
levacccp [35]3 years ago
3 0

Answer:

The expected future exchange rate​ decreases the demand for U.S. dollars. An increase in the U.S. demand for imports​ decreases the demand for U.S. dollars.

Explanation:

An exchange rate depends on how many units of one currency can be interchanged for one unit of a different one. In any country, it is possible that a higher exchange rate can weaken the balance of trade, whereas a lower exchange rate can enhance it. On the other hand, if a country has a higher need to import, the demand for its currency will fall.

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