In the 1990s, the United States eliminated its budget deficit and expanded the money supply.This should have led to

Name: In the 1990s, the United States eliminated its budget deficit and expanded the money supply.This should have led to
Brand: Quizplus
Rating: 4.7 (54 reviews)

Question

Quizplus · Accepted Answer

Expanding the money supply typically leads to lower real interest rates because more money is available for lending. A lower interest rate reduces the attractiveness of holding assets denominated in that currency, leading to a depreciation of the currency.

In the 1990s, the United States Eliminated Its Budget Deficit