Which of the Following Explains the Rise of the Dollar

question 70

Multiple Choice

Which of the following explains the rise of the dollar against most major currencies in the late 1990s,even though the United States was still running a significant balance-of-payments deficit?

• A) Reduced government intervention in the foreign exchange market
• B) Increased foreign investments in U.S. financial assets
• C) Low real interest rates in the United States compared to the rest of the world
• D) Increased exports as opposed to the imports
• E) Increased communism in the United States

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