The appreciation of the dollar would tend to affect the foreign price of U.S.-made goods by causing the foreign prices of U.S. goods to
A)decrease.
B)increase.
C)remain unchanged.
D)None of the above

Question

Quizplus · Accepted Answer

When the dollar appreciates, it means that the value of the dollar has increased relative to other currencies. This makes U.S.-made goods more expensive for foreign buyers, as they have to spend more of their own currency to buy the same amount of goods. Therefore, the foreign price of U.S.-made goods would tend to increase.

The Appreciation of the Dollar Would Tend to Affect the Foreign