Under a floating exchange-rate system,if American exports increase and American imports fall,the value of the dollar will:
A) Appreciate
B) Depreciate
C) Be officially revalued
D) Be officially devalued

Question

Quizplus · Accepted Answer

An increase in exports and a decrease in imports indicates a higher demand for US dollars in the foreign exchange market. This increased demand will cause the value of the dollar to appreciate relative to other currencies in the market. Therefore, the correct choice is A, Appreciate.

Under a Floating Exchange-Rate System,if American Exports Increase and American