Ask Question
BusinessBusiness
17 July, 14:15

High inflation in the United States would most likely have a negative impact on

A) the U. S. dollar exchange rate

B) a positive impact on the U. S. dollar exchange rate

C) a negative impact on the Gross National Product

D) a positive impact on the Gross National Product

+4
Answers (1)
  1. 17 July, 15:30
    0
    The correct answer is option A.

    Explanation:

    High inflation will cause an adverse effect on the exchange rate. However, the low inflation rate does not have a positive effect on the value of currency and exchange.

    Inflation rate affects the rate of interest which has an effect on the exchange rate. The relationship between the interest rate and inflation is complex and difficult to manage.

    Lower interest rates are likely to lower the cost of borrowing. As a result, there is an increase in investment and production. This increases aggregate demand and thus price level.

    But lower interest discourages foreign investment, the demand for domestic currency falls. This shift the currency demand curve to left decreasing the interest rate.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “High inflation in the United States would most likely have a negative impact on A) the U. S. dollar exchange rate B) a positive impact on ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A $2.00 increase in a product's variable expense per unit accompanied by a $2.00 increase in its selling price per unit will: A) decrease the degree of operating leverage. B) decrease the contribution margin.
Answers (1)
Agent fred fronts his cousin norm money to buy a client's house. shortly after the closing, agent fred flips the house and realizes a substantial profit. agent fred's actions might be describe as
Answers (1)
Do you prefer to qpply formats before text is typed while typing or after typing?
Answers (1)
Which of the following does not describe derivatives? A. These financial instruments are often used to speculate. B. Insurance is required when purchasing derivative securities. C.
Answers (1)
Which of the following statements about annuities are true? Check all that apply. An annuity is a series of equal payments made at fixed intervals for a specified number of periods.
Answers (1)
New Questions in Business
A three-line-to-eight line decoder has inputs cba where the a input is the lsb (least significant bit). the output and gates are labeled q0 through q7. one would normally expect the output of and gate q4 to be active when the inputs are:
Answers (1)
In a suburban community outside a city in Alabama, a retail store opened that specialized in dancewear for children and adults.
Answers (1)
A company can choose to use FIFO inventory costing methods for the financial statement and can elect to use either LIFO or FIFO on the tax return, however if you use LIFO for books then you must use LIFO on the tax return A. True. B. False.
Answers (1)
Which Act outlines regulations to control smoke and other forms of pollution from various sources, whether stationary or in motion?
Answers (1)
Which of the following is a difference between common stock and bonds? A) Bondholders have a voice in management; common stockholders do not. B) Bondholders have a senior claim on assets and income relative to stockholders.
Answers (1)
Home » Business » High inflation in the United States would most likely have a negative impact on A) the U. S. dollar exchange rate B) a positive impact on the U. S.
Sign Up Forgot Password?