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source Yahoo answers:
The US dollar- not the can dollar- is falling for a combination of 3 reasons, all else equal:
1. RELATIVE interest rates are falling
2. RELATIVE productivity is slower
3. RELATIVE attractivness of US investments is declining.
The dollar will increase for 3 reasons all else equal:
1. Raise RELATIVE interest rates
2. Increase RELATIVE productivity
3. increase the RELATIVE attractivness of US investments.
Each of these things increase demand for dollars, which in turn increases the value.
Your question implies that the decreased value of the dollar is a bad thing. Nothing could be further from the truth- at least for the US. There are huge imbalances in the US economy (i.e., trade balance, savings rate, consumption) that have to be corrected eventually and a devalued dollar encourages these corrections. In addition, the worsening credit crunch and real estate woes are costing jobs and decreasing economic output. These declines are being offest- at least in part- by greater exports and foreign capital investment that would not occur if the dollar hadn't sunk to its current level. In addition, the cheap dollar is bringing in foreign investment into real estate, which is helping to stabilize- or at least mitigating the drop- real estate values.
What else can I help you with?
What causes the price of gold to fall?
The price of gold can be subject to fall do to demand of the product versus the availability of the product. Also the shape of the economy can drive the price of gold to drop if the dollar is actually worth more than face value.
The value of a dollar in 1907?
the value of a dollar was equal to 98 dollars today
When the dollar drops what will happen to the dollar inecuador?
When the dollar drops in value, it typically means that the purchasing power of the dollar decreases relative to other currencies. In Ecuador, where the U.S. dollar is the official currency, a drop in the dollar's value can lead to higher prices for imported goods, as they become more expensive in terms of local currency. This can result in inflation and reduced consumer purchasing power, impacting the overall economy. However, since Ecuador uses the dollar, the direct effects are somewhat mitigated compared to countries with their own currencies.
If interest rates rise what will happen to the value of the dollar?
When US interest rates rise the dollar appreciates or rises in value. Because our interest rates are increasing, other countries are buying our capital which causes the demand from US dollars to increase and increases the exchange rate, meaning it takes more of another currency to buy an American dollar.
How dollar value is estimated?
The dollar value of a coin is based upon rarity, condition, date, and mintmark.
What is the duration of Million Dollar Money Drop?
The duration of The Million Dollar Drop is 3600.0 seconds.
What causes the price of gold to fall?
The price of gold can be subject to fall do to demand of the product versus the availability of the product. Also the shape of the economy can drive the price of gold to drop if the dollar is actually worth more than face value.
When did The Million Dollar Drop end?
The Million Dollar Drop ended on 2011-04-28.
When was The Million Dollar Drop created?
The Million Dollar Drop was created on 2011-03-21.
When was Million Dollar Money Drop created?
Million Dollar Money Drop was created on 2010-12-20.
When did Million Dollar Money Drop end?
Million Dollar Money Drop ended on 2011-02-01.
What are the release dates for The Thousand-Dollar Drop - 1917?
The Thousand-Dollar Drop - 1917 was released on: USA: 24 April 1917
What is the value of a 1864 silver half dollar?
the value is usally a dollar
What was the value of the dollar in the 60's?
what was the value of a dollar in the 1960's
What is the value of a 1976 kona dollar?
Value of 1976 kons dollar
What is the value of 1864 silver dollar?
What is the value of an 1864 silver dollar.
What is the value of the gold color one dollar coin?
A "one dollar" coin has the value of one dollar!
