Question

In addition to the size of the GDP, some other factors that affect the value of the American dollar are its relative _____________ compared to other currencies and the relative stability of the governments that issue those currencies..

Answer 1

Answer:

The correct word for the blank space is:  scarcity.

Explanation:

Besides scarcity, some other factors influence the U.S. dollar value such as government stability, supply and demand, market psychology, and technical factors. When the U.S. exports goods it creates a demand for American dollars because customers must pay in that currency. The value of the U.S. dollar can be gauged by monitoring events like the Gross Domestic Product (GDP) since it reveals what is happening in the economy.