During 1981-1985, the United States pursued a restrictive monetary policy that sharply lowered inflation. At the same time, large budget deficits helped push real interest rates to an all-time high. What would you expect to happen to the value of the dollar on the foreign exchange market?
Both the lower inflation rate and higher real interest rates should have increased the demand for the dollar, causing an appreciation relative to other currencies. This is precisely what happened. .
Economics
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The account that records the receipts from the exports of goods and services sold abroad, the payments for imports of goods and services from abroad, net interest income paid abroad, and net transfers is the ________
A) current account B) official settlements account C) international capital account D) capital and financial account
Economics
Which of the following is included in both M1 and M2?
a. currency b. demand deposits c. other checkable deposits d. All of the above are correct.
Economics