A primary reason that explains the appreciation in the value of the U.S.dollar in the 1980s is:
A) Large trade surpluses for the United States
B) Relatively high inflation rates in the United States
C) Lack of investor confidence in the U.S.monetary policy
D) Relatively high interest rates in the United States

Question

Quizplus · Accepted Answer

Relatively high interest rates in the United States led to an increase in demand for the dollar as investors sought higher returns on their investments. This increased demand for the dollar then led to an appreciation in its value.

A Primary Reason That Explains the Appreciation in the Value