An appreciation of the dollar causes an increase in:
A) exports.
B) imports.
C) demand.
D) supply.
E) a higher price level

Question

Quizplus · Accepted Answer

When the dollar appreciates, it becomes stronger relative to other currencies. This makes foreign goods and services cheaper for American consumers and businesses, leading to an increase in imports. Conversely, American goods become more expensive for foreign buyers, which can reduce exports, but this option is not about the decrease in exports.

An Appreciation of the Dollar Causes an Increase In