Need help with history: the fed adopts an easier monetary policy.

timer Asked: Dec 1st, 2015
account_balance_wallet $5

Question Description

the fed adopts an easier monetary policy. how is this likely to affect the value of the dollar and U.S. interest rates?

Tutor Answer

School: Cornell University

Thank you for the opportunity to help you with your question!

Interest rates can affect the value of the dollar versus that of other countries� currencies. All other things held constant, when real (inflation-adjusted) interest rates are higher in the United States than in other countries, foreigners want to invest their funds here in order to earn a high return. The resulting increase in the demand for the dollar pushes up the value of the dollar.

Please let me know if you need any clarification. I'm always happy to answer your questions.

flag Report DMCA

Top quality work from this guy! I'll be back!

Similar Questions
Hot Questions
Related Tags
Study Guides

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors