Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

in the first half of the 1980s, the american fiscal and monetary policies resulted in an increase in real interest rates relative to the rest

in the first half of the 1980s, the american fiscal and monetary policies resulted in an increase in real interest rates relative to the rest of the world. as a result,

a. the supply of usd in the foreign exchange market increased.

b. the american demand for foreign securities increased.

c. the usd appreciated considerably.

d. the price of u.s. goods in foreign markets decreased, causing exports to increase, and the price of foreign goods in u.s. markets increased, causing imports to fall.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Forecasting

Authors: John E. Hanke, Dean Wichern

9th edition

132301202, 978-0132301206

More Books

Students also viewed these Finance questions

Question

Why do some people resist change?

Answered: 1 week ago