A strong U.S. dollar relative to foreign currencies means that foreign products cost
A) more in the United States, and U.S. products cost more abroad.
B) less in the United States, and U.S. products cost more abroad.
C) more in the United States, and U.S. products cost less abroad.
D) less in the United States, and U.S. products cost less abroad.

Question

Quizplus · Accepted Answer

When the U.S. dollar is strong relative to foreign currencies, it means that each dollar can buy more foreign currency. This makes foreign products cheaper in the United States because it takes fewer dollars to buy the same amount of foreign goods. Conversely, it makes U.S. products more expensive abroad because it takes more of the foreign currency to buy the same amount of U.S. goods.

A Strong U