The strength of the dollar is a measure of the ability of the dollar to purchase foreign currency in international money. A strong dollar translates into

Question

Quizplus · Accepted Answer

A strong dollar provides greater purchasing power for the American dollar, meaning that American consumers can buy more foreign goods for the same amount of dollars. This also makes it cheaper for American companies to buy foreign inputs, which can decrease costs of American goods exported to other countries. However, it may make imported goods more expensive for American consumers. It also does not necessarily make it easier to sell goods abroad, as a strong dollar can make American goods relatively more expensive in foreign currency terms.

The Strength of the Dollar Is a Measure of the Ability