Question:

Why does supply of US dollar decreases when US increase their exports?

by  |  earlier

0 LIKES UnLike

Please explain to me also why does the demand of US dollar increase and the supply of US dollar decreases when US increase their exports... thank you!

 Tags:

   Report

1 ANSWERS


  1. When foreigners buy from USA.  Then they pay with US dollars.  Which removes US dollars from international trade between other countries.  And which creates the need for foreigners to exchange their money into US dollars.

    The US dollar is used for trade between foreign countries and not just for trade with USA.  And when USA removes some of the dollars from international circulation by exporting more.  Then this creates a shortage of US dollars for international trade between other countries.

Question Stats

Latest activity: earlier.
This question has 1 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.
Unanswered Questions