All else equal and given the current system of exchange rates, if the United States enters a period of exceptionally strong grow

Question

3 years ago

13

All else equal and given the current system of exchange rates, if the United States enters a period of exceptionally strong grow

th,
(A) the pressure on the dollar is to depreciate.
(B) the pressure on the dollar is to revalue.
(C) the pressure on the dollar is to appreciate.
(D) the pressure on the dollar is to devalue.

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1 answer:

katrin2010 [14] · Answer 1 · 2021-12-30T12:24:08+03:00

Answer:

(A) the pressure on the dollar is to depreciate.

Explanation:

According to my research on Economics and Government Influence, I can say that if the United States enters a period of exceptionally strong growth then the pressure on the dollar is to depreciate. This is because if the US experiences exceptionally strong growth it will begin to increase the supply of dollars to foreign countries, which will cause the dollar to diminish in value (depreciate).

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