Assume that inflation is zero in the U.S. and in Europe and will remain at zero. U.S.

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Assume that inflation is zero in the U.S. and in Europe and will remain at zero. U.S. interest rates are presently the same as in Europe. Assume that the economic growth for the U.S. is presently similar to Europe. Assume that international capital flows are much larger than international trade flows. Today, there is news that clearly signals economic conditions in Europe will be weakening in the future, while economic conditions in the U.S. will remain the same. Explain why and how (which direction) the euro's value would change today based on this information.
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