The expected future exchange rate the demand for u. s. dollars. an increase in the u. s. demand for imports the demand for u. s. dollars.

The expected future exchange rate decreases the demand for U.S. dollars. An increase in the U.S. demand for imports decreases the demand for U.S. dollars.

Explanation:

An exchange rate depends on how many units of one currency can be interchanged for one unit of a different one. In any country, it is possible that a higher exchange rate can weaken the balance of trade, whereas a lower exchange rate can enhance it. On the other hand, if a country has a higher need to import, the demand for its currency will fall.

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