By decreasing the relative production costs of U.S.companies, a dollar appreciation tends to lower U.S.export prices in foreign-currency terms, which induces an increase in the amount of U.S.goods exported abroad.

Question

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A dollar appreciation makes U.S. goods more expensive in foreign markets, which tends to reduce the amount of U.S. goods exported abroad as they become less competitive compared to locally produced or other foreign goods.

By Decreasing the Relative Production Costs of U