Answered

High inflation in the United States would most likely have:

A. a negative impact on the U.S. dollar exchange rate
B. a positive impact on the U.S. dollar exchange rate
C. a negative impact on the Gross National Product
D. a positive impact on the Gross National Product



Answer :

GinnyAnswer

Final answer:

High inflation in the United States negatively affects the U.S. dollar exchange rate.


Explanation:

High inflation in the United States would most likely have a negative impact on the U.S. dollar exchange rate. This is because high inflation erodes the buying power of the currency, making it less attractive to hold or acquire, which decreases the demand for the dollar in foreign exchange markets.


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