Problem
In the early 1980s, both US interest rates and the value of the dollar rose sharply, reducing the current account balance. In the late 1980s, US interest rates rose again, but the value of the dollar did not increase, and the current account balance did not decline. What factors caused these varying reactions?
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.