The higher the exchange rate,the

Question

Quizplus · Accepted Answer

When the exchange rate is higher, it means that the value of the domestic currency is worth more in comparison to foreign currencies. This leads to higher dollar cost of imported goods, as foreign goods become more expensive. Additionally, a higher exchange rate means that it is more expensive for foreign buyers to purchase goods from the domestic market, leading to lower demand for foreign exchange. Therefore, choice B is the best answer.

The Higher the Exchange Rate,the