A strong dollar is normally expected to cause:

Question

Quizplus · Accepted Answer

A strong dollar leads to lower import prices on goods, which can cause domestic producers to become less competitive and potentially lay off workers. This can cause higher unemployment in the short term. However, the lower import prices also contribute to lower inflation, which can benefit the economy in the long term. Therefore, a strong dollar typically leads to high unemployment and low inflation in the U.S.

A Strong Dollar Is Normally Expected to Cause