sheila lives in the united states and wants to buy brian some chocolates imported from belgium. the currency…

sheila lives in the united states and wants to buy brian some chocolates imported from belgium. the currency of the united states is the dollar; belgiums currency is the euro. how will the importation of chocolate from belgium impact the market for the dollar and the market for the euro? choose 1 answer: a the supply of the dollar and the demand for the euro will decrease. b the supply of the dollar and the demand for the euro will increase. c the supply of the dollar will decrease, and there will be no change in the demand for euros. d there will be no change in the supply of the dollar, and the demand for the euro will decrease. e the supply of the dollar will increase, and the demand for the euro will decrease.

sheila lives in the united states and wants to buy brian some chocolates imported from belgium. the currency of the united states is the dollar; belgiums currency is the euro. how will the importation of chocolate from belgium impact the market for the dollar and the market for the euro? choose 1 answer: a the supply of the dollar and the demand for the euro will decrease. b the supply of the dollar and the demand for the euro will increase. c the supply of the dollar will decrease, and there will be no change in the demand for euros. d there will be no change in the supply of the dollar, and the demand for the euro will decrease. e the supply of the dollar will increase, and the demand for the euro will decrease.

Answer

Brief Explanations:

When the US imports chocolate from Belgium, US importers need to exchange dollars for euros to pay Belgian suppliers. This increases the supply of dollars in the foreign - exchange market as more dollars are offered to get euros. Also, the demand for euros rises as importers need euros to make payments.

Answer:

B. The supply of the dollar and the demand for the euro will increase.