When the US dollar rises in value, it maximizes US consumer welfare but adversely affects US exports and employment

Question

Quizplus · Accepted Answer

A stronger US dollar makes imports cheaper for US consumers, potentially increasing their welfare. However, it also makes US exports more expensive for foreign buyers, which can reduce demand for US goods abroad, potentially harming US exports and employment in export-oriented industries.

When the US Dollar Rises in Value, It Maximizes US