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 makes the currency less attractive as purchasing - power decreases, so it weakens demand.
• Stability of government gives confidence to international investors, strengthening demand for the currency.
• Victory in war can boost a nation's economic and political standing, potentially increasing currency demand.
• High gross domestic product indicates a strong economy, attracting foreign investment and increasing currency demand.
• Defeat in war usually leads to economic and political instability, weakening currency demand.
• Low unemployment rates suggest a healthy economy, which can strengthen currency demand.

Answer:

• stability of government
• victory in war
• high gross domestic product
• low unemployment rates