Appreciation of the U.S.dollar can be caused by

Question

Quizplus · Accepted Answer

An increase in the demand for dollars will cause appreciation of the U.S. dollar because buyers will be willing to pay more for each dollar, which will increase its value relative to other currencies. A decrease in the demand for dollars or an increase in the supply of dollars can cause depreciation of the U.S. dollar because there will be more dollars circulating and buyers will be willing to pay less for each dollar, which will decrease its value relative to other currencies.

Appreciation of the U.S.dollar Can Be Caused by