If the expected value of the U.S.dollar rises,one would expect ________.

Question

Quizplus · Accepted Answer

If the expected value of the U.S. dollar rises, it means that the dollar is expected to become stronger in comparison to other currencies. This increases the demand for the dollar as more people will want to purchase U.S. goods and services using the stronger dollar. This, in turn, leads to an increase in the demand for the dollar. Therefore, option B is the correct answer. Options A, C, and D are incorrect as they do not relate to the increase in the expected value of the U.S. dollar.

If the Expected Value of the U