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Mashutka [201]
3 years ago
15

Relatively high interest rates in the united states causes the dollar to ____ in the ____.

Business
1 answer:
sergey [27]3 years ago
8 0

Answer:

a. appreciate, long run

Explanation:

  • As when a currency has relative higher interest rates this means that the dollar will appreciate and hence maintain long-run stability. As the dollar can buy more than its equivalent.
  • This is also caused by the increase in the demands for the money in the home country and tends to attract foreign investments.  
  • A longer run tend is more likely to be caused by inflation due to the higher interest rates the dollar.
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