If the value of the U.S.dollar rises from 1.0 per dollar to 1.3 per dollar,
A)imports of automobiles from Germany will decline
B)American inflation will increase
C)German exports of all traded goods will decline
D)American exports to Germany will decrease
E)sales by American manufacturers for the export markets will increase.

Question

If the value of the U.S.dollar rises from  1.0 per dollar to  1.3 per dollar,
A)imports of automobiles from Germany will decline 
B)American inflation will increase 
C)German exports of all traded goods will decline 
D)American exports to Germany will decrease 
E)sales by American manufacturers for the export markets will increase.

Quizplus · Accepted Answer

When the value of the U.S. dollar rises, it makes U.S. goods more expensive for other countries to import, causing a decrease in exports. Therefore, American exports to Germany will decrease.

If the Value of the U