4
Which of these factors would strengthen demand for a nation's currency on the international market? Select all that
apply.
high domestic inflation
stability of government
victory in war
high gross domestic product
defeat in war
low unemployment rates
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Answer :

Factors that would strengthen demand for a nation's currency on the international market include: 1. **Stability of government:** When a nation's government is stable and reliable, it instills confidence in investors and traders, leading to an increased demand for the nation's currency. 2. **High gross domestic product (GDP):** A strong and growing GDP indicates a healthy economy, attracting foreign investors who need the nation's currency to engage in trade and investments. 3. **Low unemployment rates:** Low unemployment signifies a robust economy with strong consumer spending and economic growth, which can boost the demand for the nation's currency. In contrast, factors like high domestic inflation, victory or defeat in war do not necessarily strengthen the demand for a nation's currency on the international market. High inflation can erode the value of a currency, while the outcomes of war may have complex and varied effects on a nation's economy and currency.