Final answer:
The U.S. would have a strong currency abroad due to low inflation, stable monetary policy, and high-interest rates. Importing cheap goods and the political party in power are not direct factors in a strong currency.
Step-by-step explanation:
The question asks to identify factors that would lead to a strong U.S. currency abroad. The reasons that the U.S. would have a strong currency abroad include:
Low inflation: A slight annual rise in inflation, as stated in option (b), helps maintain the value of a currency.
Stable monetary policy: As mentioned in option (d), a stable monetary policy, usually guided by a central bank such as the Federal Reserve, promotes confidence in the currency and can lead to its strength.
High interest rates: Option (e) suggests that high-interest rates attract foreign investment, increasing demand for the currency and thereby strengthening it.
Options (a) and (c) do not necessarily lead to a strong currency. The political party in power, such as the Democrats, does not inherently affect currency strength; it is more about the economic policies they implement. Moreover, importing cheap goods (option a) does not contribute to a strong currency and can sometimes indicate a trade deficit.