Demand for the U.S. dollar will go down if ________. a. the rate of return on...
Demand for the U.S. dollar will go down if ________.
a. the rate of return on investment increases throughout Europe
b. the U.S. government reduces tariffs on imported cars
c. interest rates go up in the united states
d. U.S. exports increase
Homework Answers
Answer
Option a
a. the rate of return on investment increases throughout Europe
the demand for dollars goes down as the demand for its substitute euro increases because the return on investment in Europe increases.
the reduction in tariff by the US increases the demand for the US dollars.
the increase in interest rate increases the investment in the US and increases the demand for US dollars
the increase in US export increases the supply of dollars.
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