A higher exchange rate for the U.S. dollar means that a dollar buys
A) more foreign currency and more foreign goods and services.
B) less foreign currency and fewer goods and services.
C) more foreign currency, and that U.S. exports will rise.
D) less foreign currency and more foreign goods and services.

Question

Quizplus · Accepted Answer

A higher exchange rate for the U.S. dollar means that each dollar can be exchanged for more foreign currency, allowing it to buy more foreign goods and services.

A Higher Exchange Rate for the U