The fall in the value of the U.S. dollar between 1985 and 1988 was caused by
A) economic growth in the developed countries of Europe.
B) a fall in prices of exported U.S. goods.
C) a trade surplus in the United States during the previous years.
D) a combination of government intervention and market forces.
E) the protectionism measures adopted by European countries.

Question

Quizplus · Accepted Answer

The fall in the value of the U.S. dollar between 1985 and 1988 was primarily due to the Plaza Accord, where governments of major economies agreed to intervene in currency markets to depreciate the U.S. dollar, along with market forces reacting to these interventions.

The Fall in the Value of the U