If real GDP in the EU is rising faster than real GDP in the U.S. 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

If real GDP in the EU is rising faster than in the U.S., it suggests stronger economic growth in the EU, which could lead to higher demand for the euro and lower demand for the dollar, causing the dollar to depreciate in nominal terms.

If Real GDP in the EU Is Rising Faster Than