A ____ dollar tends to exert inflationary pressure in the U.S.

Name: A ____ dollar tends to exert inflationary pressure in the U.S.
Brand: Quizplus
Rating: 4.8 (66 reviews)

Question

Quizplus · Accepted Answer

A weak dollar tends to make imports more expensive and increases demand for domestically produced goods, leading to inflationary pressure. This is because producers must pay more for imported materials, which in turn raises the price of the final product. A stable or strong dollar, on the other hand, generally has a neutral or deflationary effect on the economy.

A ____ Dollar Tends to Exert Inflationary Pressure in the U.S