rising dollar in the early 1980s can be attributed to
A) high real interest rates in the United States
B) improved investment prospects in the United States
C) the growing U.S. budget deficit
D) a and b only

Question

Quizplus · Accepted Answer

The rising dollar in the early 1980s can be attributed to both high real interest rates in the United States and improved investment prospects in the United States. These two factors attracted foreign investment into the U.S. economy, which increased demand for U.S. dollars and caused the value of the dollar to rise. The growing U.S. budget deficit may have played a role in dampening the value of the dollar, but it was not the primary driver of its appreciation.

Rising Dollar in the Early 1980s Can Be Attributed to