An appreciation of the dollar against all currencies in the foreign exchange market would result in all of the following, except:
A) a decrease in the dollar prices paid by U.S. importers.
B) an increase in the cost of vacations in Florida for Japanese tourists.
C) foreign holidays for U.S. residents to be less expensive.
D) an increase in the foreign currency prices paid for U.S. exports.
E) an increase in the demand for U.S. exports.

Question

Quizplus · Accepted Answer

An appreciation of the dollar makes U.S. goods more expensive for foreign buyers, which would likely decrease, not increase, the demand for U.S. exports.

An Appreciation of the Dollar Against All Currencies in the Foreign