If the United States experiences an economic boom, compared to other countries, how will this affect the value of the U.S. dollar?
A. It will fall because other nations would be forced to raise their interest rates.
B. It will fall because the United States will import more goods and services, leading to an increased supply of dollars.
C. It will rise because U.S. GDP would be rising faster than other countries.
D. It will rise because the Fed will have to lower U.S. interest rates.
Answer: B
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