ECO372 Week 4 DQ#4

timer Asked: Sep 25th, 2013

Question description

Week 4, DQ4: "Let's Keep the Dollar Strong."

As we near the political season again, let us not be surprised to hear politicians vowing that they will make or keep the dollar strong. Is a strong U.S. dollar effective for the US economy? For other economies? Why or why not?

Before responding to this question, be sure that you understand how exchange rates are affected by productivity, income, inflation and interest rates, respectively.

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