Appreciation of the U.S. dollar means that the
A) dollar is now cheaper in terms of other currencies.
B) demand for U.S. products will rise.
C) general price level in the United States has increased.
D) dollar value is higher in terms of other currencies.
E) price of U.S. exports will fall.

Question

Quizplus · Accepted Answer

Appreciation of the U.S. dollar means that the value of the dollar has increased in terms of other currencies. This generally makes imports cheaper, but U.S. exports more expensive, which can negatively impact exports and make them less competitive in international markets.

Appreciation of the U.S. Dollar Means That the