For the Three Years from Early 2002 to Early 2005

question 58

Multiple Choice

For the three years from early 2002 to early 2005, the euro maintained a strong and steady rise in value against the U.S. dollar (USD) . After a brief respite in 2005, the euro continued its climb against the USD into 2008. Which of the following were NOT a contributing factor in the assent of the euro and the decline in the dollar?

• A) severe U.S. balance of payments deficits
• B) a general weakening of the dollar after the attacks of September 11, 2001
• C) large U.S. balance of payment surpluses
• D) All of the above were contributing factors.

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