The dollar's value increased when the Fed cut interest rates in late 2007.

Question

Quizplus · Accepted Answer

Typically, when a central bank cuts interest rates, it reduces the value of its currency relative to those of other countries. This is because lower interest rates make an economy less attractive to foreign investors, who may withdraw their investments and thereby reduce demand for the currency. Therefore, the dollar's value would not have increased when the Fed cut interest rates in late 2007.

The Dollar's Value Increased When the Fed Cut Interest Rates