Answer
Supply of euros
Work Step by Step
As U.S. bond matures, paid to Spanish citizen, it follows that the Spanish citizen receives dollars and may convert them to euros, so the supply of euros increases.
Economics: Principles, Problems, and Policies, 19th Edition
by McConnell, Campbell R.; Brue, Stanley L.; Flynn, Sean M.
Published by
McGraw-Hill Education
ISBN 10:
0073511447
ISBN 13:
978-0-07351-144-3
Chapter 38 - The Balance of Payments, Exchange Rates, and Trade Deficits - Questions - Page 798: 2f
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