Everything else being equal,an appreciation of the dollar against the yuan ________.

Question

Quizplus · Accepted Answer

An appreciation of the dollar against the yuan makes U.S. goods more expensive for Chinese buyers, reducing their demand for U.S. goods. This leads to a decrease in the demand for dollars by the Chinese to purchase U.S. goods, thereby increasing the quantity of dollars supplied in the foreign exchange market as U.S. exporters convert their earnings back to dollars.

Everything Else Being Equal,an Appreciation of the Dollar Against the Yuan