The soaring (appreciating) value of the trade-weighted dollar in the early 1980s
A) was caused by relatively low interest rates in the United States.
B) decreased the international competitiveness of American exporters.
C) resulted in Americans importing fewer goods and services.
D) increased the demand for American exports of goods and services.

Question

Quizplus · Accepted Answer

A soaring trade-weighted dollar makes American exports more expensive for foreigners, reducing the international competitiveness of American exporters. This means that American exporters will sell fewer goods and services internationally.

The Soaring (Appreciating) Value of the Trade-Weighted Dollar in the Early