AP® Macroeconomics

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Increase in Demand in Forex Market

APMACR-BF3OH0

If American consumers have an increase in their demand for Mexican tortillas and salsa, which of the following would increase in the foreign exchange market?

A

Demand for United States dollars and supply of Mexican pesos.

B

Demand for both United States dollars and Mexican pesos.

C

Supply of United States dollars and demand for Mexican pesos.

D

Supply of both United States dollars and Mexican pesos.

E

The international value of the United States dollar.