Which of the following would tend to be associated with an appreciating currency?
A) low levels of inflation
B) low interest rates
C) rapid increases in domestic GDP
D) high levels of inflation relative to other countries
E) exchange controls

Question

Quizplus · Accepted Answer

C  Low levels of inflation can lead to an appreciating currency as it maintains purchasing power. Rapid increases in domestic GDP can attract foreign investment, increasing demand for the currency.

Which of the Following Would Tend to Be Associated with an Appreciating