For many years, the only currency that oil-producing countries would accept for their oil was the United States dollar. From what you know about exchange rates, what do you suppose would happen to the value of the dollar if the demand for oil were to increase?

The demand for oil cannot increase.

The value of the dollar would increase.

The value of the dollar would not change.

The value of the dollar would go down.

Question

For many years, the only currency that oil-producing countries would accept for their oil was the United States dollar. From what you know about exchange rates, what do you suppose would happen to the value of the dollar if the demand for oil were to increase?

The demand for oil cannot increase.

The value of the dollar would increase.

The value of the dollar would not change.

The value of the dollar would go down.

anonymous · Answer

the llast one, because when it is in higher demand there is more of it and the more dollars there are the less the value, thats why the 100 dollar bill has a high value because it isnt in high demand

anonymous · Answer

thanks