An increase in the trade-weighted value of the dollar indicates a dollar appreciation relative to the currencies of its major trading partners and a worsening of U.S.international competitiveness.

Question

Quizplus · Accepted Answer

An increase in the trade-weighted value of the dollar means the dollar can purchase more units of foreign currency, which makes U.S. exports relatively more expensive and less competitive in foreign markets. Therefore, U.S. international competitiveness would worsen.

An Increase in the Trade-Weighted Value of the Dollar Indicates