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lesya692 [45]
4 years ago
12

Holding other things constant, an increase in the inflation rate in the US compared to China may cause the demand for dollar to

_____________ and the supply for dollar to __________.
Social Studies
1 answer:
Kazeer [188]4 years ago
8 0

Answer:

Decrease; Increase

Explanation:

Holding other things constant, an increase in the inflation rate in the US compared to China may cause the demand for dollar to <u>decrease</u> and the supply for dollar to <u>increase</u>.  If the dollar value decreases due to inflation compared to the Chinese yuan, larger amount of it can be bought by the yuan thereby causing a demand for it to decrease which will result in an increase in the supply of the dollar.

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