Due to a boom in the US,the average rate of return on investments is likely to rise causing the US dollar to
A)Appreciate
B)Depreciate
C)Not change in value
D)None of the above

Question

Due to a boom in the US,the average rate of return on investments is likely to rise causing the US dollar to​
A)​Appreciate
B)Depreciate
C)Not change in value
D)​None of the above

Quizplus · Accepted Answer

When the US experiences a boom and the rate of return on investments rises, it signals to investors that there are profitable opportunities in the US economy. As a result, more foreign investors will want to invest in the US, increasing the demand for the dollar and causing its value to appreciate.

Due to a Boom in the US,the Average Rate of Return