When the dollar appreciates, then we might expect (everything else equal) that imports in the U.S. will _____ and exports will _____.
A) rise, fall
B) rise, rise
C) fall, fall
D) fall, rise
E) rise, remain unchanged

Question

Quizplus · Accepted Answer

When the dollar appreciates, it means that the value of the dollar has increased relative to other currencies. This makes foreign goods and services cheaper for U.S. consumers and businesses, leading to an increase in imports. Conversely, U.S. goods and services become more expensive for foreign buyers, leading to a decrease in exports.

When the Dollar Appreciates, Then We Might Expect (Everything Else