Question

The U.S. dollar appreciated relative to other major trading currencies between 2014 and early 2016 primarily because

• U.S. exports were higher.
• demand for dollars had slumped in the intervening years.
• the United States had lower interest rates than other developed nations.
• U.S. multinationals had increased the investments in foreign markets.
• the U.S. economy had emerged from the great recession in better shape than that of any other developed nation.

Which of the following occurred as a result of increased demand for the dollar following the 2008 great recession?

• The value of the euro rose relative to the dollar.
• Imports from foreign countries decreased.
• U.S. multinationals increased the value of their foreign investments.
• The dollar depreciated against major trading currencies.
• The value of the dollar rose relative to foreign currencies.

Which of the following occurred as a result of the strong U.S. dollar from 2014 to 2016?

• The price of foreign exports to the United States increased.
• U.S. exporters increased overseas investments.
• The price of U.S. exports dropped.
• The price of U.S. exports rose.
• U.S. imports dropped significantly.

Why did foreign investors invest in U.S. Treasury Bills following the 2008–2009 global recession?

• The dollar was trading higher.
• They were looking for a safe haven for their money.
• U.S. Treasury Bills were effectively “on sale.”
• Interest rates were lower in the United States.
• Foreign currencies could buy more dollar-based assets.

Answer 1

As Which of the following ocavored as a result of increased demand for the & following the o 2008 great recession? Ans To understand the result we need to understand the causes of the great recession, which is bummaused Yaelow o maja reasons 7 weak monetary Global policy financial y Wrong assessment crisis of credit rating agencies Borrowing excesserely especially by households las a result US $ appreciated in 2008 as increased unrestment in the US treaswey bills which was scelesered to as "safe heaven" and feversal of carsey trade (carry trade; boxcóweng at low interest wole cand everesting en å highe date of return). The appreciation ompeleed Cheaper imports & expensive exports, therefore increase in imports. Result of strong Us $ from 294 to 2016 b as stated above about cheaper imports and enpensive enfaoits je price of US exports store and us imports increased o Increased unrestment in us treasury taille un due to the udea of saken haren". The town capital nagarawed gap between domestic lemhinola demand for capital leat due to the crisis it fell P hence unrested in the safe haven of treasure bille