Question

If a sizeable amount of U.S. currency is held outside of the United States,

Answer 1

If a sizeable amount of U.S. currency is held outside of the United States, it can have significant implications for the U.S. economy, leading to higher interest rates and potential hardship for U.S. consumers and firms interested in borrowing.

Step-by-step explanation:

If a sizeable amount of U.S. currency is held outside of the United States, it can have significant implications for the U.S. economy. This situation is related to the topic of international finance and economics. When foreign investors hold a large amount of U.S. currency, it can result in reduced financial investment in the United States, which can lead to higher interest rates and potentially impose hardship on U.S. consumers and firms interested in borrowing.