A $2021$ article in the Wall Street Journal indicated that financial experts expected that the U$.$S$.$ dollar to$$ "stay weak" during the first year of the Biden administration. The article noted that$$ "when the global economy$$ recovers, the dollar tends to weaken as investors search out riskier investments$$ abroad."

$$Source: Caitlin$$ Ostroff,

$"$Foreign

Investors Expect the Dollar to Remain Weak Under$$ Biden," Wall Street

Journal$,$

January$16,2021.$

a$.$ What does the article mean by the dollar being$$ weak?

A$.$

A weak dollar means that one unit of a foreign currency will buy fewer U$.$S$.$ dollars.

B$.$

A weak dollar means that the it takes less U$.$S$.$ dollars to buy a unit of foreign currency.

C$.$

A weak dollar means that the U$.$S$.$ dollar will not buy as many units of foreign currency.

D$.$

A weak dollar means that the U$.$S$.$ dollar will buy more units of foreign currency.

Part $2$

b$.$ What is the connection between the strength of the U$.$S$.$ dollar and investors switching from investing in U$.$S$.$ financial assets to investing in foreign financial$$ assets?

A$.$

Investors looking to invest abroad must buy U$.$S$.$ dollars and sell foreign$$ currency, increasing the supply of U$.$S$.$ dollars in the$$ market, thus weakening the dollar.

B$.$

Investors looking to invest abroad must buy U$.$S$.$ dollars and sell foreign$$ currency, increasing the supply of U$.$S$.$ dollars in the$$ market, thus strengthening the dollar.

C$.$

Investors looking to invest abroad must sell U$.$S$.$ dollars to buy foreign$$ currency, increasing the supply of U$.$S$.$ dollars in the$$ market, thus weakening the dollar.

D$.$

Investors looking to invest abroad must sell U$.$S$.$ dollars to buy foreign$$ currency, increasing the supply of U$.$S$.$ dollars in the$$ market, thus strengthening the dollar.