Problem
Suppose the signs of an improvement in the U.S. economy lead international investors to resume lending to the U.S. government and businesses. Policymakers, however, are worried about how this will influence the dollar. How would this event affect the market for the dollar? How should the central bank, the Fed, respond to this event if it wants to keep the value of the dollar unchanged?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.