With a floating exchange rate, when the Federal Reserve increases the U.S. money supply the U.S. dollar will

Name: With a floating exchange rate, when the Federal Reserve increases the U.S. money supply the U.S. dollar will
Brand: Quizplus
Rating: 4.9 (50 reviews)

Question

Quizplus · Accepted Answer

With a floating exchange rate, an increase in the U.S. money supply would lead to an increase in the supply of U.S. dollars on the market, which would lead to a decrease in the value of the U.S. dollar relative to other currencies. In other words, the U.S. dollar would depreciate.

With a Floating Exchange Rate, When the Federal Reserve Increases