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If the US Dollar Appreciates in the Foreign Exchange Market

Question 57

Multiple Choice

If the U.S. dollar appreciates in the foreign exchange market,

A) American goods will become more expensive for foreign buyers and foreign goods will be cheaper for Americans.
B) American goods will become less expensive for foreign buyers and foreign goods will be more expensive for Americans.
C) American goods will become more expensive for foreign buyers and foreign goods will be more expensive for Americans.
D) American goods will become cheaper for foreign buyers and foreign goods will be cheaper for Americans.
E) neither the price of U.S. exports nor the price of U.S. imports will change.

Correct Answer: