Evidence from the United States during the period 1973-2002 indicates that the value of the dollar and the measure of the ________ interest rate rose and fell together.

Question

Quizplus · Accepted Answer

The real interest rate, which is adjusted for inflation, often moves in tandem with the value of the dollar. This is because higher real interest rates can attract foreign investment, increasing demand for the dollar and thus its value.

Evidence from the United States During the Period 1973-2002 Indicates