A strong dollar is normally expected to cause:

Question

Quizplus · Accepted Answer

A strong dollar tends to make imported goods cheaper, which increases competition for domestic producers and can lead to decreased demand for domestic goods, resulting in lower employment. However, a strong dollar also makes imports cheaper and decreases the cost of goods and services, which can lead to lower inflation. Therefore, a strong dollar is generally associated with low unemployment and low inflation, as is the case in option B.

A Strong Dollar Is Normally Expected to Cause