Describe effect of perceptions of economic stability

Reference no: EM132822550

Question: Watch the NBC Learn video clip Some U.S. Businesses Profit from a falling Dollar regarding the depreciation of the U.S. dollar during the last recession. Your text mentions various factors that influence the value of a currency. Consider the effect of perceptions of economic stability. As the U.S. economy weakens, foreign investors demand less dollars.

1. How does the lower demand for U.S. dollars affect the value of the U.S. dollar, and consequently, is this good or bad for U.S. businesses looking to sell abroad?

2. Discuss another real-world example of how changing currency values have affected people's daily lives.

Reference no: EM132822550

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