Recall the Application about the possible link between the value of the U.S. dollar and the worldwide increase in commodity prices to answer the following question(s). Starting in the summer of 2010, there was a rise in prices of commodities such as oil and food worldwide. Some economists suggested that monetary policy in the United States was the cause of the worldwide commodity boom.
-According to this Application, some economists noticed that the U.S. dollar ________ largely because monetary policy in the United States had driven interest rates ________.
A) depreciated; down
B) depreciated; up
C) appreciated; down
D) appreciated; up

Question

Quizplus · Accepted Answer

The sentence "monetary policy in the United States had driven interest rates down" suggests that the value of the U.S. dollar would depreciate (go down) because lower interest rates make the currency less attractive to investors.

Recall the Application About the Possible Link Between the Value