Which of the following would not be an appropriate response to an unfavorable balance of trade for the United States?
A) increase tariffs
B) appreciate the dollar
C) subsidize exports
D) impose import quotas
E) impose exchange controls

Question

Quizplus · Accepted Answer

Appreciating the dollar would make U.S. exports more expensive to foreign buyers and imports cheaper to U.S. consumers, potentially worsening the trade balance rather than improving it.

Which of the Following Would Not Be an Appropriate Response