Asked by Heila Najib on Sep 24, 2024
Due to a recession in the US,the average rate of return on investments is likely to fall causing the demand for US dollar to
A) Increase
B) Decrease
C) Not change
D) None of the above
Demand for US Dollar
The desire or need by individuals, businesses, and governments worldwide to hold assets in U.S. dollars, influenced by economic stability and interest rates.
Average Rate of Return
A calculation used to measure the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.
Recession
A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.
- Learn about the contributors to currency demand and what influences exchange rates.
- Examine the influence of economic phases, including downturns and growth periods, on national currency stability.
Learning Objectives
- Learn about the contributors to currency demand and what influences exchange rates.
- Examine the influence of economic phases, including downturns and growth periods, on national currency stability.