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If the supply of the Aruban florin decreases relative to the U.S. dollar, then the: A. US dollar will appreciate B. US dollar will depreciate
If the supply of the Aruban florin decreases relative to the U.S. dollar, then the:
A. US dollar will appreciate
B. US dollar will depreciate
C. Quantity demanded of Aruban florins will increase
D. Demand for the US dollar would increase
E. Aruban florin will depreciate
As per Coursehero expert answer, it says D. Demand for the US dollar would increase. Shouldn't the answer be B. US dollar will depreciate, because less supply of Arunban florin implies less demand for US goods and hence dollars, and hence US dollar would depreciate?
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