From 1970 to 1998 the U.S.dollar
A)gained value compared to the German mark because inflation was higher in the U.S.
B)gained value compared to the German mark because inflation was lower in the U.S.
C)lost value compared to the German mark because inflation was higher in the U.S.
D)lost value compared to the German mark because inflation was lower in the U.S.

Question

Quizplus · Accepted Answer

The U.S. dollar lost value compared to the German mark because inflation was higher in the U.S. than in Germany during that period, leading to a depreciation of the dollar.