If growth in the United States speeds up so that investors believe they can make a bigger profit from U.S. assets, the ________ U.S. dollars will ________.
A) demand for; increase
B) demand for; decrease
C) supply of; increase
D) supply of; decrease

Question

Quizplus · Accepted Answer

If investors believe they can make a bigger profit from U.S. assets due to faster growth in the United States, they will want to buy more of these assets. This increases the demand for U.S. dollars, as investors need dollars to purchase U.S. assets.

If Growth in the United States Speeds Up So That