A higher exchange rate value of the dollar reduces inflation but has a contractionary effect on the economy.

Name: A higher exchange rate value of the dollar reduces inflation but has a contractionary effect on the economy.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

A higher exchange rate value of the dollar makes imports cheaper, which can help reduce inflation. However, it also makes exports more expensive, potentially reducing demand for domestically produced goods and services abroad, which can have a contractionary effect on the economy.

A Higher Exchange Rate Value of the Dollar Reduces Inflation