An appreciation of the dollar is usually a sign that...?

Question

A. U.S. bond prices have increased.
B. U.S. interest rates have increased.
C. real national income in the U.S. is increasing.
D. the Fed is pursuing an expansionary monetary policy.

Answer 1

I would appreciate it if you gave me a dollar. It's a sign that I would appreciate a dollar.

Answer 2

B because investors would be attracted to higher yields that will results from interest rate increases. Not A because foreigners will not buys bonds at higher prices. Not C. It is generally no because this would mean higher inflation and a lower purchasing power parity meaning the price would drop, unless the economy was doing poorly and which investors then would take it as good news. And not D because this answer is vague and I not sure exactly what it means. Expansionary Monetary Policy though could mean more money flow, but this would devalue the currency.

BUT seriously, do your OWN HOMEWORK. I have a economics final in two days, but I actually am studying (minus my Yahoo answer breaks)