Anonymous
Anonymous asked in Social ScienceEconomics · 2 months ago

All else held constant, the international value of foreign currencies will increase against the U.S. dollar if _____.?

there are withdrawals of funds by foreigners from U.S. money markets

there is an increase in the number of foreign tourists in the United States

the U.S. Federal Reserve raises real interest rates

U.S. citizens reduce spending on imports

2 Answers

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  • Oiy
    Lv 5
    2 months ago

    The first one is most likely. Capital outflow is one of the causes of dollar depreciation.

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  • martin
    Lv 7
    2 months ago

    First choice: there are withdrawals of funds by foreigners from US money markets, because those funds are part of what makes America financially strong.

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