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

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

Dec 1st, 2015

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Interest rates can affect the value of the dollar versus that of other countries´┐Ż 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.

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Dec 1st, 2015

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