How would each of the following be likely to affect the value of Dollar, all else being equal?

a)American stocks are perceived as having become much riskier financial investments.

b)European textile firms switch from American produced textile to textile produced in China.

c)The American government imposes a large tariff on imported automobiles

d)Fed reports that it is less concerned about inflation and more concerned about and impending recession in US?

e)US consumers increase their spending on imported goods.

Pleaseeee Heeeelp

a) Demand for dollars declines, reducing its value.

b) Payments in China are in US currency, but if prices are lower, demand for dollar will decline as will its value.

c) Assuming no decline in imports, demand for dollars increases, increasing its value.

d) Increased supply likely, so value goes down.

e) Relative demand for foreign currency increased, thus moving value of dollar down.

Make sure you vote!

c

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