Which of the following are reasons that the U.S. would have a strong currency abroad? Select all that apply.

U.S. companies buy cheaply made goods from abroad at a great price.
There is generally only a slight annual rise in inflation.
The Democrats are in power.
The monetary policy of the US is stable.
Interest rates are high.

Answers

The correct answers are: There is generally only a slight annual rise in inflation. The monetary policy of the US is stable. Interest rates are high. A slight rise in inflation implies a tight  fiscal discipline and monetary policy that promote a strong currency.  High interest rates promote a strong currency by attracting foreign investors.


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