U.S. dollar, oil prices, and recycling petrodollars

case study-requirement

must be at least 1 full page length with two references: In-text citations are required

case study attached

Reread the Country Focus on the U.S. dollar, oil prices, and recycling petrodollars, then answer the following questions:

a. What will happen to the value of the U.S. dollar if oil producers decide to invest most of their earnings from oil sales in domestic infrastructure projects ?

b. What factors determine the relative attractiveness of dollar-, euro-, and yen denominated assets to oil producers flush with petrodollars? What might lead them to direct more funds toward non-dollar denominated assets?

c. What will happen to the value of the U.S. dollar if OPEC members decide to invest more of their petrodollars toward nondollar assets, such as euro-denominated stocks and bonds?

d. In addition to oil producers, China is also accumulating a large stock of dollars, currently estimated to total $3.3 trillion. What would happen to the value of the dollar if China and oil-producing nations all shifted out of dollar-denominated assets at the same time? What would be the consequence for the U.S. economy?