A strong dollar places ____ pressure on U.S. inflation, which in turn places ____ pressure on U.S. interest rates, which in turn place ____ pressure on U.S. bond prices.

Question

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A strong dollar makes imports cheaper, reducing inflationary pressure (downward pressure on inflation). Lower inflation can lead to lower interest rates (downward pressure on interest rates). Lower interest rates increase bond prices (upward pressure on bond prices).

A Strong Dollar Places ____ Pressure on U