If real GDP in the U.S. is rising faster than real GDP in the EU then:
A) the dollar should appreciate in nominal terms.
B) the dollar should depreciate in nominal terms.
C) the dollar should appreciate in real terms.
D) the dollar should depreciate in real terms.

Question

Quizplus · Accepted Answer

When the U.S. real GDP is rising faster than the EU's, it often indicates stronger economic performance, which can attract foreign investment, increasing demand for the dollar and causing it to appreciate in nominal terms.

If Real GDP in the U