Answer to Question #220900 in Macroeconomics for cindy

Question

the purchase of US goods by foreigners raises demands for the US dollar? is this correct

Answer 1

Yes ;

If demand for U.S. goods rises, the domestic real interest rate rises, foreign income rises, or the foreign real interest rate falls, demand for dollars rises. If demand for foreign goods rises, the domestic real interest rate falls, domestic income rises, or the foreign real interest rate rises, the supply of dollars rises.