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Solution

Foreigners buying US products must sell their currency to obtain dollars in order to pay for exported goods . The more foreigners demand U.S. products, the more of their currencies they will supply in exchange for U.S. dollars . So demand for US dollars increase since now they need more dollars to buy US products . The demand curve shifts right .

So dollars become costlier now or the exchange rate appreciates . As the curve shifts right the amount of currency required to buy 1 unit of dollar rises . So price of dollars increase and also quantity of dollars .