U.S. import transactions create: a foreign demand for dollars and the satisfaction of this demand decreases the supplies of foreign monies held by U.S. banks a foreign demand for dollars and the satisfaction of this demand increases the supplies of foreign monies held by U.S. banks a U.S. demand for foreign monies and the satisfaction of this demand decreases the supplies of foreign monies held by U.S. banks a U.S. demand for foreign monies and the satisfaction of this demand increases the supplies of dollars held by foreign banks

U.S. import transactions create: a foreign demand for dollars and the satisfaction of this demand decreases the supplies of foreign monies held by U.S. banks a foreign demand for dollars and the satisfaction of this demand increases the supplies of foreign monies held by U.S. banks a U.S. demand for foreign monies and the satisfaction of this demand decreases the supplies of foreign monies held by U.S. banks a U.S. demand for foreign monies and the satisfaction of this demand increases the supplies of dollars held by foreign banks

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter19: The International Monetary System: Order Or Disorder

Section: Chapter Questions

Problem 4TY

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Question

U.S. import transactions create:

a foreign demand for dollars and the satisfaction of this demand decreases the supplies of foreign monies held by U.S. banks

a foreign demand for dollars and the satisfaction of this demand increases the supplies of foreign monies held by U.S. banks

a U.S. demand for foreign monies and the satisfaction of this demand decreases the supplies of foreign monies held by U.S. banks

a U.S. demand for foreign monies and the satisfaction of this demand increases the supplies of dollars held by foreign banks

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