1 According to Gourinchas and Rey, the U.S. exorbitant privilege is the fact that

Group of answer choices

U.S. pays higher interest on its foreign liabilities than it receives on its foreign assets

U.S. pays lower interest on its foreign liabilities than it receives on its foreign assets

USD was an anchor currency in the Bretton Woods system

USD is used abroad as currency of circulation in many countries

2 The fact that U.S. CA

Group of answer choices

is net borrower

IM

S > I

S

is net lender

IM > EX

3.

Question 5 3 pts FRED - Trade Weighted U.S. Dollar Index: Broad, Goods and Services 127 4 125 0 122 5 120 0 Index Jan 2006-100 117 5 1150 1125 1100 2018-10 2019-01 2019-04 2019-07 3014-10 2080-01 2020-04 2020-07 2020-10 2021-01 2021-04 Use what you know about the USD dynamics in 2020 to identify whether highlighted area in the chart shows USD appreciation or depreciation. O Appreciation O DepreciationFRED - Trade Weighted U.S. Dollar Index: Major Currencies, Goods (DISCONTINUED) 150 140 130 120 110 Index Mar 1973-100 100 06 w 1975 1980 1985 1980 1:995 3030 3004 2010 2015 What accounts for the appreciation of the USD in the early 1980s, according to the UIP model? O High unemployment O Debt crisis Global recession Trade war O Rapid increase in interest rates