For the United States,a loss in its reserve currency position would likely result in several costs,including
All of the above
A) Americans would have to pay more for imported goods as the dollar depreciates
B) interest rates on both private and governmental debt would increase
C) the economic supremacy of the United States would be lessened
D) all of the above

Question

Quizplus · Accepted Answer

All of the above options are potential costs that the United States could face if it loses its reserve currency position. A weaker dollar would make imported goods more expensive for Americans, while higher interest rates would increase the cost of borrowing for both the private sector and the government. Finally, losing reserve currency status could diminish American economic power and influence in the global economy.

For the United States,a Loss in Its Reserve Currency Position