Answer to Question #150306 in Macroeconomics for KAne

Question

Which of the following will happen in the forex market for the Euro if Germans want to buy American copper:
a. Demand for the euro increases
b. Demand for the euro decreases
c. Supply for the euro increases
d. Supply for the euro decreases

Answer 1

c. Supply for the euro increases

For this transaction, it is necessary to buy dollars, therefore, the offer on the euro market will increase.