If the demand for U.S.dollars goes up, the exchange rate will _______ and, as a result, net exports in the United States will ______.

Question

Quizplus · Accepted Answer

If the demand for U.S. dollars goes up, foreign buyers would need to exchange their currency for U.S. dollars, which would increase the demand for U.S. dollars and, subsequently, the exchange rate. As the exchange rate increases, American exports become more expensive to customers in other countries, leading to a decrease in net exports in the United States.

If the Demand for U