A sudden expectation of future appreciation of the dollar causes funds to flow __________ the United States and the dollar to actually __________.
A) out of; depreciate
B) out of; appreciate
C) into; depreciate
D) into; appreciate

Question

Quizplus · Accepted Answer

A sudden expectation of future appreciation of the dollar would cause funds to flow into the United States as investors seek to take advantage of the expected gain in value of the currency. As more funds flow into the country, the demand for dollars increases, leading to an actual appreciation of the currency.

A Sudden Expectation of Future Appreciation of the Dollar Causes