An increase in the U.S. exchange rate will make U.S. exports.

Question

Quizplus · Accepted Answer

An increase in the U.S. exchange rate means that the value of the U.S. dollar has increased relative to other currencies. This makes U.S. exports more expensive for foreign buyers, as they will have to use more of their own currency to purchase U.S. goods. At the same time, imports from other countries become cheaper for the United States, as U.S. buyers can use fewer U.S. dollars to buy foreign goods. Therefore, an increase in the U.S. exchange rate makes U.S. exports less attractive to foreigners and imports from other countries more attractive to the United States, as stated in choice B.

An Increase in the U