A strong dollar places ____ pressure on inflation, which in turn places ____ pressure on the dollar.

Name: A strong dollar places ____ pressure on inflation, which in turn places ____ pressure on the dollar.
Brand: Quizplus
Rating: 4.8 (56 reviews)

Question

​A strong dollar places ____ pressure on inflation, which in turn places ____ pressure on the dollar.

Quizplus · Accepted Answer

A strong dollar usually leads to lower inflation due to cheaper imports and reduced demand for domestically-produced goods. Lower inflation then creates upward pressure on the dollar as investors seek to invest in countries with stronger currency and lower inflation rates.

​A Strong Dollar Places ____ Pressure on Inflation, Which in Turn

A Strong Dollar Places ____ Pressure on Inflation, Which in Turn