Which of the following tends to cause the U.S.dollar to appreciate in value?
A) an increase in U.S. prices above foreign prices
B) rapid economic growth in foreign countries
C) a fall in U.S. interest rates below foreign levels
D) an increase in the level of U.S. income

Question

Quizplus · Accepted Answer

Rapid economic growth in foreign countries tends to increase their demand for imports, including those from the U.S. This can lead to an appreciation of the U.S. dollar as demand for dollars increases to purchase U.S. goods and services.

Which of the Following Tends to Cause the U