The United States democratically elects a new President, one who plans to decrease trade tariffs among the nation’s foreign partners. The stable election, along with an encouraging economic forecast, will likely have what effect on the value of the U. S. dollar? A)Neither trade relationships, nor political conditions, tend to affect the value of a nation’s currency.

B)The value of the dollar will decrease, since substantial and sudden inflation is likely to occur during any economic growth period.
C)The value of the dollar will increase, since substantial and sudden inflation is likely to occur during any economic growth period.
D)Since there are economic and political indicators that predict a strong and growing economy, the dollar will tend to appreciate as demand for the currency increases.