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The only currency that Country Z will accept for its traded goods is the U.S. dollar. A buyer from any country needs U.S. dollars to
The only currency that Country Z will accept for its traded goods is the U.S. dollar. A buyer from any country needs U.S. dollars to buy goods from Country Z. What would happen to the value of the dollar if demand for Country Zs goods were to increase? Nothing, since the demand for goods from a single country cannot change. The value of the dollar would increase. Buyers of goods from Country Z would want more dollars. The value of the dollar would not change. Buyers of goods from Country Z would want the same number of dollars. The value of the dollar would go down. Buyers of goods from Country Z would want fewer dollars
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