Major Changes In The Us Economy Research Paper

There are many different variables within an economy that could affect the exchange rates, interest rate and inflation rates. All of these things then have an effect on unemployment rates, net exports and imports and foreign exchange rates. When looking to travel the world, it is important to look at foreign exchange rates to see if you have sufficient funds available to get into countries and exchange your currency for theirs.

Economies that have high interest rates that are left unchecked can expect a downward spiral not too long after the interest rate stays peaked. People take out investments that they have, most people do not have as much money to spend freely as the price of goods and services also increase. If the interest rates in a country increase, that means that their economy becomes stronger in the foreign exchange market. This means that if the US economy had an increase in interest rates, it means that the US Dollar would increase in value. This would make it a prime time for people in the US to travel as they …show more content…
This means that other countries will be drawn to investing in the US because of its healthy economy, if inflation is controlled of course. The US will be able to export goods and services in exchange for money and resources. This will help the economy of the US to keep growing. There would be a problem if the net imports were more than the exports as this would cause the currency to weaken. This is true because with greater exports, people and factories have to work to produce products to export. The other side of this is that imports become a lot cheaper with a higher currency. Therefore the US would be able to import more than they export depending on what they are trying to do. This could mean that imports from the UK will become a more attractive thing as the strong economy of the US makes it possible to import more than