As the dollar appreciates, holding all other factors constant, dollar prices of foreign goods

Question

Quizplus · Accepted Answer

When the dollar appreciates, it becomes stronger relative to other currencies. This means that it can buy more units of other currencies, which in turn means that each unit of the other currency can buy fewer dollars. As a result, foreign goods become relatively more expensive in dollar terms, leading to a decrease in their dollar prices.

As the Dollar Appreciates, Holding All Other Factors Constant, Dollar