An appreciation of the U.S. dollar relative to foreign currencies will make

Question

Quizplus · Accepted Answer

When the U.S. dollar appreciates relative to foreign currencies, it means that each dollar can buy more foreign currency than before. This makes U.S. goods more expensive for foreign buyers, leading to a potential decrease in demand for U.S. exports. Choices A and C are incorrect because an appreciation of the dollar actually makes foreign imports cheaper in the United States, not more expensive, and would likely decrease the demand for U.S. exports rather than increase it.

An Appreciation of the U