Holding other things constant, an increase in the inflation rate in the US compared to China may cause the demand for dollar to _____________ and the supply for dollar to __________.

Respuesta :

bogadu

Answer:

Decrease; Increase

Explanation:

Holding other things constant, an increase in the inflation rate in the US compared to China may cause the demand for dollar to decrease and the supply for dollar to increase.  If the dollar value decreases due to inflation compared to the Chinese yuan, larger amount of it can be bought by the yuan thereby causing a demand for it to decrease which will result in an increase in the supply of the dollar.