“The strength of the GDP data only highlighted the diverging views between the dollar bulls, who predict that strong growth will support the currency, and the bears who warn that stronger growth will only serve to widen the current account deficit and thus undermine the greenback. Those forces seem to be coming together to keep us right where we are for the time being.” What are these two forces?
A. higher foreign investment and lower imports
B. higher foreign investment and lower imports
C. lower foreign investment and higher imports
D. higher foreign investment and higher imports
The two forces mentioned in the given statement are:
A. higher foreign investment and lower imports
B. higher foreign investment and higher imports
The two forces mentioned in the text are:
A. Higher foreign investment and lower imports
B. Lower foreign investment and higher imports
To determine which option is correct, we need to understand the context of the statement. The passage suggests that there are diverging views on the impact of strong GDP data on the currency. The "bulls" predict that strong growth will support the currency, while the "bears" warn that it will widen the current account deficit and undermine the currency.
From this information, we can infer that higher foreign investment and lower imports (Option A) would support the currency and align with the view of the "bulls." Conversely, lower foreign investment and higher imports (Option C) would lead to a larger current account deficit, supporting the view of the "bears."
Therefore, the correct answer is:
A. Higher foreign investment and lower imports