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Suppose, as sometimes happens, wealth-holders around the world decide they want to buy more United States dollars in order to buy assets (stocks, bonds, real
Suppose, as sometimes happens, wealth-holders around the world decide they want to buy more United States dollars in order to buy assets (stocks, bonds, real estate, ...) in the U.S., perhaps because the U.S. looks like a safer place than other alternatives in times of trouble.
A. What does that do to the value of the dollar in international currency markets? Explain why.
B. How does the change you cited in part (A) affect U.S. Exports and Imports, all else constant? Explain.
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