how-does-an-increase-in-us-income-affect-the-supply-of-us-dollars-and-the-exchan

Question

How does an increase in US income affect the supply of US dollars and the exchange rate?

Accepted Answer

Increases the supply of US dollars, leading to a decrease in the exchange rate.

Answer

Decreases the supply of US dollars, leading to an increase in the exchange rate.

Answer

Increases the supply of US dollars, but the exchange rate increases.

Answer

Has no effect on the supply of US dollars or the exchange rate.