Question

What makes the demand for u. s. dollars change? in world demand for u. s. exports ______ the demand for u. s. dollars. a in the u. s. interest rate differential ______ the demand for u. s. dollars

Answer 1

Increasing world demand for U.S. exports increases the demand for U.S. dollars. A rise in the U.S. interest rate differential​ increases the demand for U.S. dollars.

The official money of the United States of America is the USD (United States dollar). One hundred cents make up one dollar, often known as the U.S. dollar. It is distinguished from other currencies based on the dollar by the symbol $ or US$.

A country's currency will be in great demand if its exports exceed its imports since more people will want to buy its products. According to supply and demand economics, prices increase and the value of the currency increases when demand is high. Generally speaking, a country's currency will appreciate at higher interest rates. Higher interest rates frequently draw foreign investment, which raises both demand for and the value of the currency of the host nation.

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