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 currency value (less demand).
• Stability of government: Increases investor confidence (more demand).
• Victory in war: Boosts economic/political strength (more demand).
• High GDP: Shows economic strength (more demand).
• Defeat in war: Weakens economy (less demand).
• Low unemployment: Indicates strong economy (more demand).

Answer:

B. stability of government, C. victory in war, D. high gross domestic product, F. low unemployment rates