In the early 1980s,there was a massive ________ of the dollar while at the same time U.S.net exports ________,which is ________ the modeling of net exports presented in the textbook.

Question

Quizplus · Accepted Answer

In the early 1980s, there was indeed a significant appreciation of the dollar. According to economic models, as a currency appreciates, the country's net exports are expected to fall because its goods become more expensive for foreign buyers. This scenario is in accord with the standard modeling of net exports, where an appreciation of the domestic currency makes exports less competitive abroad, leading to a decrease in net exports.

In the Early 1980s,there Was a Massive ________ of the Dollar