An improvement in the quality of U.S.goods would lead to a ________ in the demand for dollars and a ________ in the exchange rate.

Question

Quizplus · Accepted Answer

An improvement in the quality of U.S. goods would make them more attractive to both domestic and international consumers, leading to an increase in demand for these goods. This, in turn, would increase the demand for dollars (as international buyers convert their currency to dollars to purchase the goods) and lead to a rise in the exchange rate, making the dollar stronger against other currencies.

An Improvement in the Quality of U