In the early 1970s, the United States ran large balance of payments ________, causing an ________ dollar and an ________ German mark.

Question

Quizplus · Accepted Answer

In the early 1970s, the United States experienced large balance of payments deficits, which typically leads to a depreciation of the national currency, making the dollar overvalued in this context. Conversely, this situation would make foreign currencies, like the German mark, undervalued relative to the dollar.

In the Early 1970s, the United States Ran Large Balance