Answer
Supply of euros
Work Step by Step
This decision by German automobile firm will cause a supply for euro in the foreign exchange markets.
The German was supposed to pay in US dollars in order to build the assembly plant in the US since they will need to pay American companies to build the plant.
This will need to bring the euro that they have into the foreign exchange market to exchange for US dollars.
As a result, it will increase the supply of euros in the markets.
