One of the reasons for the rapid rise in the value of the dollar between 1980 and 1985 despite a large trade deficit is due to
A)political stability in all other parts of the world.
B)heavy capital outflows from the United States.
C)low real interest rates in the United States.
D)slow economic growth in the developed countries of Europe.
E)increasing exports against decreasing imports in the United States.

Question

Quizplus · Accepted Answer

Slow economic growth in Europe made the U.S. a more attractive destination for investment, leading to capital inflows and a stronger dollar.

One of the Reasons for the Rapid Rise in the Value