When the value of the dollar rises against foreign currencies, exports _____ and imports _____.
A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall

Question

Quizplus · Accepted Answer

When the value of the dollar rises against foreign currencies, exports become more expensive for foreigners, making them less attractive and decreasing demand. On the other hand, imports become cheaper for domestic buyers, becoming more attractive and increasing demand. As a result, exports fall and imports rise.

When the Value of the Dollar Rises Against Foreign Currencies