An increase in U.S. inflation relative to Singapore inflation places upward pressure on the Singapore dollar.

Question

Quizplus · Accepted Answer

If U.S. inflation increases relative to Singapore inflation, then the value of the U.S. dollar will decrease relative to the Singapore dollar. This means that it will take more U.S. dollars to purchase the same amount of Singapore dollars, which puts upward pressure on the Singapore dollar.

An Increase in U