A rise in U.S.real GDP would cause

Question

Quizplus · Accepted Answer

An increase in real GDP suggests that the overall economy is growing and expanding, leading to higher levels of consumption and investment. This would typically result in an increased demand for foreign goods and services, leading to a higher demand for foreign currencies in order to make these purchases. This would cause a rightward shift in the demand curves for foreign currencies, indicating a higher willingness to buy foreign currencies at any given exchange rate.

A Rise in U.S.real GDP Would Cause