Question

which of these factors would strengthen demand for a nations currency on the international market? select all that apply. high domestic inflation stability of government victory in war high gross domestic product defeat in war low unemployment rates

Explanation:

• High domestic inflation reduces the value of a currency, weakening demand.
• A stable government signals economic - policy stability, attracting foreign investment and strengthening currency demand.
• Victory in war can boost national confidence and economic prospects, increasing currency demand.
• High GDP indicates a strong economy, which strengthens currency demand.
• Defeat in war can lead to economic instability and weaken currency demand.
• Low unemployment rates suggest a healthy economy, strengthening currency demand.

Answer:

• Stability of government
• Victory in war
• High gross domestic product
• Low unemployment rates