Question

One of the reasons for the rapid rise in the value of the dollar between 1980 and 1985 despite a large trade deficit is due to increasing exports against decreasing imports in the united states. heavy capital outflows from the united states. slow economic growth in the developed countries of europe. political stability in all other parts of the world. low real interest rates in the united states.

Answer 1

One of the reasons for the rapid rise in the value of the us dollar between 1980 and 1985 in due to commercial exchange with industrialized countries with political stability in other parts of the world, commercial relations with 10 countries of the organisation for economic co-operation and development and switzerland helped dollar raised 79% between 1980 and 1985.