Q. Given a system of floating Exchange rates, falling income in the United States would trigger:

• A. An increase in the demand for imports and an increase in the demand for foreign currency
• B. An increase in the demand for imports and a decrease in the demand for foreign currency
• C. A decrease in the demand for imports and an increase in the demand for foreign currency
• D. A decrease in the demand for imports and a decrease in the demand for foreign currency

Correct Answer: D