Appreciation of the U.S.dollar will ________ exports and ________ imports,other things equal.

Question

Quizplus · Accepted Answer

When the U.S. dollar appreciates, it becomes relatively more expensive for foreign buyers to purchase U.S. goods and services, which leads to a decrease in exports. At the same time, it becomes relatively cheaper for U.S. residents to import goods and services from foreign countries, which leads to an increase in imports.