The United States government has been using a policy of quantitative easing to increase economic growth. What is the most likely effect of this policy on the internal and external value of the US dollar?

A.
B.
C.
D.
Economics
IGCSE&ALevel
CAIE
Exam No:9708_s25_qp_34 Year:2025 Question No:21

Answer:

A

Knowledge points:

10.2.1 relationship between the internal value of money and the external value of money
5.3.2 tools of monetary policy: interest rates, money supply and credit regulations
6.4.4 causes of changes in a floating exchange rate: demand and supply of the currency

Solution:

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