8. For each of the following possible events, indicate whether the global value

Question

8. For each of the following possible events, indicate whether the global value of the U.S. dollar
will A: rise or B: fall.
( a ) American cars become suddenly more popular abroad.
( b ) Inflation in the United States accelerates.
( c ) The United States falls into a recession.
( d ) Interest rates in the United States drop.
( e ) The United States experiences rapid increases in productivity.
( f ) Anticipating a return to the gold standard, Americans suddenly rush to buy gold from the
two big producers, South Africa and the Soviet Union.
( g ) War is declared in the Middle East.
( h ) The stock markets in the United States collapse.
9. The following schedules summarize the supply and demand

Explanation / Answer

1. dollar value rise

2. falls

3.falls (Sudden collapse)

4. falls

5. rise

6. falls

7. falls

8. falls

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