Statement I: If the dollar keeps falling in value,most likely the euro will replace it as an international currency.
Statement II: Economist Paul Krugman noted that a declining dollar makes foreign investment in dollar-denominated assets much less attractive.

Question

Quizplus · Accepted Answer

Statement I is true because a declining dollar could lead to the euro becoming more attractive as an international currency. Statement II is true as a declining dollar can indeed make foreign investment in dollar-denominated assets less attractive, as noted by economist Paul Krugman.

Statement I: If the Dollar Keeps Falling in Value,most Likely