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

Question

Quizplus · Accepted Answer

The U.S. dollar gained value compared to the Italian lira because inflation was higher in Italy, leading to a depreciation of the lira relative to the dollar.