If Europeans begin to view the United States as a more attractive investment opportunity, the outcome will be a(n) _____ of the dollar, which will _____.

Question

Quizplus · Accepted Answer

When Europeans view the United States as a more attractive investment opportunity, they will likely convert their currency to dollars to invest, increasing the demand for the dollar. This increased demand leads to an appreciation of the dollar. An appreciated dollar makes U.S. goods and services more expensive for foreigners, including Europeans, which could discourage them from buying U.S. goods and services.

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