The appreciation in the value of the dollar in the early 1980s is explained by all of the following except:
A) The United States being considered a safe haven by foreign investors
B) Relatively high real interest rates in the United States
C) Confidence of foreign investors in the U.S.economy
D) Relatively high inflation rates in the United States

Question

Quizplus · Accepted Answer

Relatively high inflation rates in the United States would have actually contributed to a decline in the value of the dollar, not an appreciation. The correct explanations for the appreciation of the dollar in the early 1980s are A, B, and C.

The Appreciation in the Value of the Dollar in the Early