Unit Four (for the Final Exam) Unit Four--Assignment Two--Web Problem 5
Explain what would happen to the international value of the U.S. dollar in each of the following situations. Would the dollar appreciate or depreciate, and why?
1 |
The Fed raises the federal funds rate as it pursues a tighter monetary policy.
2 |
South Korean investors are attracted to the NASDAQ stock exchange and they invest billions of dollars in new Internet stocks.
3 |
Both France and the U.S. dive into a recession, but the U.S. recession is more severe.
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Congratulations! You have just completed your macroeconomics course. I hope you found it rigorous and challenging but not unreasonably difficult. Good luck on your final exam.