Asked by Tristen Adams on Jul 25, 2024

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Other things being equal, the international value of foreign currencies will increase against the U.S. dollar if

A) U.S. citizens reduce spending on imports.
B) the U.S. Federal Reserve raises real interest rates.
C) the number of foreign tourists in the United States increases.
D) foreigners withdraw funds from U.S. money markets.

International Value

The worth of a product or service recognized across different countries and cultures, often influencing its global marketability and pricing.

Real Interest Rates

The interest rate adjusted for inflation, representing the true cost of borrowing and the real yield to investors.

U.S. Dollar

The official currency of the United States, often used as the global standard for financial transactions.

  • Investigate how macroeconomic indicators like inflation and interest rates influence currency valuations.
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Vanessa VarlackAug 01, 2024
Final Answer :
D
Explanation :
When foreigners withdraw funds from U.S. money markets, they convert their dollars into their home currency, increasing the demand for their own currency relative to the U.S. dollar. This leads to an increase in the value of foreign currencies against the U.S. dollar.