If the exchange rate for US dollars increases, what happens to the quantity of US dollars demanded, and how is this represented on a demand curve?

• A. The quantity demanded increases, and the demand curve shifts to the right.
• B. The quantity demanded decreases, and the demand curve shifts to the left.
• C. The quantity demanded increases, and there is a movement down along the demand curve.
• D. The quantity demanded decreases, and there is a movement up along the demand curve.

Answer: (D)